The ASX listing requirements are tailored to support both early stage and mature companies. Listing on ASX can be completed via an Initial Public Offering (IPO), where capital is raised at the time of listing, or via a Compliance listing, where capital is not raised at the time of listing. The Listing rules set out the specific requirements that an organisation has to meet to list on ASX’s market and are underpinned by a set of principles that ensure the quality of the market ASX operates. To be eligible to list on ASX, a company must satisfy minimum admission criteria, including structure, size and number of shareholders.
Note: This is a general guide to listing requirements and is not exhaustive, nor a guarantee of a successful listing application. For full details of the ASX listing rules please refer to Compliance and disclosure.
Spread (distribution) of shareholders
The company must have at least 300 shareholders with holdings valued at a minimum of $2000 each, and at least 50% of the company’s shares must be held by parties unrelated to the company and its directors. If between 50% and 75% of shares are held by related parties, the company must have at least 350 shareholders. If more than 75% of the company’s shares are held by related parties, the company must have at least 400 shareholders.
It is not necessary to have the required spread before the listing application is made. Typically approval for listing is granted subject to the company meeting the shareholder spread requirement through the offer of shares associated with the listing application.
Financial reporting is required on a half yearly and annual basis in Australia. Certain companies that are listed under a listing category for companies without a track record of revenue or profit are required to also prepare and file quarterly cash flow statements. In addition, mining and oil & gas exploration companies are required to file quarterly reports on activities including changes in tenement interests, issued and quoted securities.
Dual listing – recognition of comparable obligations
Generally overseas companies are required to comply with all of the ASX Listing Rules in the same way as an Australian company. However, ASX may in limited circumstances, exempt companies already listed on a major stock exchange from compliance with specific ASX listing rule requirements.