Raising capital? You have got capacity!

The ASX and ASIC have granted temporary capital raising relief to listed companies

There's no doubt that company finances have taken a hit from COVID-19. In doing its bit to support hard-hit companies or those entities seeking to shore up their balance sheets, the ASX has just announced a 10% uplift in the 15% placement capacity under listing rule 7.1 to facilitate capital raising for listed entities. ASX listed entities now have a 25% limit on placements under the new relief instrument.

The extra 10% does not operate in addition to any extra placement capacity under listing rule 7.1A and, to the extent that shares have been issued under 7.1A prior to the commencement of the relief instrument, the uplift will be limited to the capacity that remains.