ASIC moves to streamline IPO process

Companies planning to list on Australia's public markets will have greater flexibility to publicise and correct information about upcoming initial public offerings (IPOs) before lodging a prospectus under changes implemented by ASIC.

Consistent with the advertising regimes for product disclosure statements and crowd sourced funding offers, the changes allow companies to communicate more broadly with retail investors about future offers while maintaining important disclosure and consumer safeguards.

ASIC's changes follow public consultation and respond to industry feedback to simplify the pre-lodgement advertising framework in acknowledgement of modern information sharing practices.

ASIC commissioner Simone Constant said the new approach is aimed at striking the right balance between encouraging public market investment activity, while ensuring investors continued to have access to strong and current disclosures.

"These changes are an important step in encouraging greater IPO activity and opening up investment opportunities to everyday Australians at an earlier stage, while maintaining the strong tradition of disclosure that underpins Australia's robust markets," Constant said.

"Greater advertising flexibility does not mean fewer responsibilities. Offerors of quoted or unquoted securities must ensure their advertisements direct investors to the disclosure document and application process and have arrangements in place to keep advertisements or statements up to date. Laws prohibiting misleading or deceptive conduct remain unchanged.

"Australia's markets are strong and competitive. We know through industry engagement, including our recent Financial Markets and Innovation Roundtable, that simple, pragmatic changes by regulators and industry can support the competitiveness of Australia's markets. These reforms advance ASIC's roadmap to unlock further opportunities across public and private markets by supporting new capital flows, competition and broader investor participation."

The changes extend ASIC's existing relief from the Corporations Act restrictions to allow companies planning an IPO in Australia to advertise or communicate more broadly with retail investors prior to lodging a prospectus.

The reforms aim to improve the quality and breadth of information available to potential investors and align more closely with comparable domestic and international regimes.

It further aims to modernise IPO communications policy, enabling offerors to engage more effectively with retail investors about potential offers, provide corrective information where necessary, and promote informed investor engagement in a controlled and accountable manner.