Backdoor listings are back in vogue - Five key tips if you are considering undertaking one

Australian capital markets are witnessing a resurgence of backdoor listings.

Backdoor listings were largely unregulated and consequently relatively easy, popular and frequent during the dot com boom of the late 90s and early 2000s. However when the bubble burst, ASX faced criticism over the ease in which tech companies had been able to list and as a result significantly tightened the regulatory regime.

The significant headwinds, in terms of availability of capital and changing conditions in the resources sector, facing mining stocks especially those in the junior or explorer space, has seen the appetite of speculative investors shift towards technology, industrial and other start-up stocks that do not necessarily have the capital requirements of junior explorers.