In a move with implications for small to mid-cap entities
considering a future listing, the Australian Securities Exchange
(ASX) has announced amendments to certain of its admission
requirements.
The amendments follow the ASX's consultation papers ASX
SME, Mid-Cap and Micro-Cap Equity Market Review and
Strengthening Australia's equity capital markets
(released in March 2011 and April 2012 respectively). They form
part of a range of initiatives by ASX aimed at:
- Meeting the needs of issuers and investors outside the
S&P/ASX200 (and those based in Western Australia in
particular)
- Improving the competitiveness of the ASX in a global
context.
The ASX Listing Rules (Listing Rules) set the minimum admission
criteria a company must comply with in order to obtain a listing on
the ASX. The changes to the Listing Rules announced by the ASX
affect what are commonly called the "spread" and
"assets" tests. They will take effect from 1 November
2012 (to allow a
