ASIC shrinks IPO timetable to boost listings

Initiating a two-year trial today, ASIC has enabled a shorter initial public offering (IPO) timetable for eligible entities seeking to list on the Australian Securities Exchange (ASX).

During the trial, ASIC will "informally" review eligible documents two weeks prior to public lodgement, which speeds up the IPO process by up to a week.

The ASX Fast-track is available to entities that will have a market capitalisation greater than $100 million upon listing and no ASX imposed escrow, ASIC confirmed.

They must also provide a pathfinder prospectus or pathfinder PDS at least 14 days prior to formal lodgement for review, which ASIC will aim to complete within the period.

ASIC will then generally not need to extend the seven-day exposure period to 14 days after lodgement but will retain its ability to use stop orders until listing.

Normal ASIC review processes may still apply "where there is an extended delay between the informal review completing and formal lodgement."

Further, changes still allow for concerns to be raised during the public exposure period and the issue of shares and quotation will still only occur once the exposure period has ended, ASIC said.

ASIC chair Joe Longo said the initiatives are a direct response to its discussion paper released in February.

"Earlier this year, we outlined our concerns for the future of public markets and called for actionable ideas to ensure our markets remain open, efficient and attractive to investors. I'm proud of how quickly we've been able to work with industry participants and mobilise our teams to respond to actionable ideas," Longo said.

"Creating a more streamlined IPO process underscores our commitment to ensuring our public markets remain attractive to companies and investors.

"Greater deal certainty for companies should help deliver more IPOs, which means more investment opportunities so companies can expand, increase jobs and ultimately economic growth."

Longo lamented IPO activities have been sluggish over the past decade but remained hopeful for its secondary capital raising as it continues to be "globally recognised" for its speed and efficiency.

"While we do not see regulatory settings as the silver bullet, we have received lots of ideas and are considering further regulatory adjustments to support a strong and well-functioning market," Longo said.

The ASX has outlined opportunities in listed markets, arguing that healthier IPOs will help spike "global competitiveness", while calling for consideration of new structures to mirror success from other regions.

Welcoming the initiative, ASX general manager of listings James Posnett said the shorten timeframe will benefit investors and issuers.

"The announcement is a positive step forward for the listed markets in Australia. While cyclicality is a key driver of public markets, there are clearly changing market dynamics that require the capital markets ecosystem to adapt through continuous improvement - we agree there is no silver bullet," Posnett said.

"The streamlined IPO process is one of five ideas we have put forward in our submission, and a further two where we think there is an opportunity for further discussion.

"We look forward to continuing to engage with our customers, ASIC and the industry so we can enhance the attractiveness of our listed markets to remain competitive with global peers and private capital, as well as provide retail investors with more wealth creation opportunities."

Additionally, ASIC is also announcing a class no-action position where an eligible company accepts an application during the exposure period, which applies to offers of non-quoted securities under a disclosure document issued by the company.

Entities do not need to apply to ASIC to avail themselves of this no-action position, ASIC said.