ASIC Introduces 2-Year Fast-Track IPO Trial to Boost Market Appeal

1

The tailored fast-track approach emerged from discussions on the evolving dynamics of public and private markets. ASIC Chair, Joe Longo, emphasised the trial's design to enhance the speed of listings and maintain the vitality of the public market. Through this new process, ASIC will conduct an informal review of eligible offer documents two weeks prior to public filing, potentially shortening the IPO timeline by up to a week.

This innovation means that ASIC will communicate directly with issuers before the traditional public exposure period. Such engagement reduces the need for additional documents and helps mitigate the risk of market volatility impacting investor interest due to prolonged timelines. Notably, the trial includes a 'no action' stance, allowing eligible companies to start accepting retail investor applications during the exposure period, which simplifies the overall administrative process.

Joe Longo highlighted that crafting a streamlined IPO process reaffirms ASIC's commitment to keeping the public market appealing to both companies and investors. He noted that enhancing deal certainty is expected to foster more IPOs, presenting increased investment opportunities, promoting business growth, and boosting job creation.

Longo further acknowledged that current IPO activity is at its lowest in over a decade, while Australian secondary capital raising techniques are globally esteemed for their efficiency. Earlier this year, ASIC expressed concerns about the public market's future and sought actionable ideas to ensure its ongoing attractiveness and efficiency. Longo expressed satisfaction with the prompt industry collaboration and the proactive steps taken in response to these concerns.

Even with the expedited process, ASIC assured that the ability to raise concerns during the exposure period remains intact. Shares will only be issued and quoted after this period concludes. Longo reiterated that while regulatory adjustments are not a singular solution, they represent a key component of supporting a robust market environment. Additional regulatory considerations are underway to ensure a well-functioning sound market.

Published:Wednesday, 11th Jun 2025
Source: Paige Estritori

Share this news item:

Finance News

Clear

Overseas Investors Target Australian Real Estate Debt 13 Jun 2025: Paige Estritori The Australian commercial real estate debt market is garnering attention from international investors, with the Canada Pension Plan Investment Board (CPP Investments) making significant inroads. In partnership with Nuveen, a global asset manager, a substantial investment strategy targeting Australian real estate debt has closed its second round. The total commitment exceeded $650 million, with CPP Investments contributing $300 million through their CPPIB Credit Investments Inc. - read more

ASIC Cracks Down on Risky Financial Influences 12 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has issued warnings to 18 social media influencers actively promoting high-risk financial products without the necessary licence. The move is part of a broader initiative to curb unlicensed financial advice in the online sphere, where influencers often lure young audiences with glamorous lifestyles while dispensing questionable investment tips. ASIC has identified these so-called 'finfluencers' as operating in breech of the Corporations Act by promoting complex financial products like derivatives without proper authorisation. - read more

ASIC Introduces 2-Year Fast-Track IPO Trial to Boost Market Appeal 11 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has responded to stakeholder feedback by initiating a two-year trial of a fast-track process for Initial Public Offerings (IPOs). This initiative aims to address the decline in Australian IPOs and the number of public companies by making the IPO process more efficient. - read more

Intergenerational Wealth Transfer: A Prime Opportunity for Australian Advisers 11 Jun 2025: Paige Estritori Recent findings from EY's Global Wealth Research report highlight a significant opportunity for financial advisers in Australia as a large-scale intergenerational wealth transfer looms. With only 35% of Australians planning to retain their inherited assets in their existing forms, there is a noticeable shift towards diversification, with 51% intending to spread their investments across various asset classes. This trend opens the door for advisers to engage deeply with new inheritors, ensuring client retention across generations. - read more

RBA Poised for July Rate Cut Amid Economic Slowdown 11 Jun 2025: Paige Estritori The Reserve Bank of Australia (RBA) is widely expected to cut the official cash rate (OCR) at its upcoming July meeting. According to Westpac, the probability of this decision has reached an overwhelming 97% in financial markets. - read more