Coverage boost for small and mid-cap ASX-listed companies
This article appeared in the September 2012 edition of the Listed @ ASX newsletter.
Broking firms to receive trial research funding.
Almost 50 ASX-listed small and mid-cap companies will benefit from new or extra sharebroking research coverage on them as a result of the 12-month ASX Trial Equity Research Scheme in 2012-13.
The ASX had an excellent response from broking firms to participate in the trial; 16 firms will receive funding to initiate research coverage on ASX-listed companies capitalised between $50 million and $1 billion. Snapshot reports on another 1,179 companies capitalised below $50 million will be compiled and distributed via the ASX website.
The rationale and structure of the ASX Trial Equity Research Scheme is explained in the May issue of Listed@ASX. More information is available here, and ASX has announced companies chosen for the Retail and Institutional report components.
The Company Snapshot also provides important benefits for stocks that may have no formal research coverage.
If the trial succeeds, research funding could increase from the current $1 million to $10 million annually. The cost will be spread across all ASX-listed companies, with ASX providing an additional ongoing base of $1 million.
The scheme is part of ASX’s broader efforts to provide investor-relations support for small and mid-cap companies, and help them communicate with a wider audience of investors in Australia and overseas.
Other ASX small-cap services
Now in its sixth year, the popular ASX Spotlight Series helps emerging ASX-listed companies present annually to institutional investors in London, New York, Singapore and Hong Kong, and arranges one-on-one meetings with key offshore investors.
The next ASX Spotlight Event is in Singapore on October 16 and Hong Kong on 18. This is event is currently fully subscribed but the New York event on 28 February and the London event on 7 March are currently open. Contact ASX to learn more about how ASX-listed companies can participate.
The ASX Corporate Profile service has been popular with ASX-listed companies. It provides a three-minute video featuring a company’s key executive, and is a valuable opportunity to inform more investors about the enterprise’s background, business overview and growth plans.
The ASX IR Intelligence tool was launched last year to deliver a suite of online investor relations products for ASX-listed companies. The first tool available through ASX IR Intelligence, which is an initiative between ASX and Orient Capital, was miraqle shares.
Drawing data feeds directly from the ASX, miraqle shares gives companies the ability to view, analyse, compare and download market data on the trading activity of individual shares, sectors and indices.
Information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions. Although ASX Limited ABN 98 008 624 691 and its related bodies corporate (‘ASX’) has made every effort to ensure the accuracy of the information as at the date of publication, ASX does not give any warranty or representation as to the accuracy, reliability or completeness of the information. To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from any one acting or refraining to act in reliance on this information. This document is not a substitute for the Operating Rules of the relevant ASX entity and in the case of any inconsistency, the Operating Rules prevail.
© Copyright 2013 ASX Limited ABN 98 008 624 691. All rights reserved 2013.
© 2013 ASX Limited ABN 98 008 624 691