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ASX Equity Research Update

In the last edition of Listed@ASX we announced the new ASX Equity Research Scheme, which is designed to extend research availability to a wider range of ASX listed companies.

Why?
In Australia, the availability of equity research falls away significantly outside the top 100-200 stocks.  To begin to address this lack of research for ASX-listed companies falling outside of the top 100-200 stocks, ASX has worked with Finsia, the banks, stock brokers, and other equity research houses to design and implement the ASX Equity Research Scheme. 

The intention behind the scheme is that it will increase turnover and improve valuations of participating listed companies thereby making an ASX listing more attractive, and the capital raising process easier.

Who is eligible to participate?
ASX-listed companies with market capitalisation between $70 million to $700 million.

Who is involved?
Finsia will be reponsible for the administration of the Scheme, which will include the allocation of participating companies to research providers, and involvement in the distribution of research reports.

The research providers:
ABN AMRO
Aspect Huntley Morningstar
EL&C Baillieu
Macquarie Bank
Property Investment Research
Wilson HTM

What are the benefits for listed companies?

  • An enhanced profile
  • Increased ability to attract institutional investor interest
  • Improved liquidity and higher valuations (lower cost of capital) and ease of raising capital
  • Potentially increased market capitalisations due to improved valuations
  • Easier identification of any issues that may need to be addressed in the eyes of the investment community.

What’s happened so far?
A number of ASX listed companies have already registered in the Scheme and we are on track to commence this by end of 1st quarter 2007. 

It is not too late for your company to participate and if you would like to register in the ASX Equity Research Scheme please contact the following people:

Sara Makkinga, Equity Markets, ph: 02 9227 0622
Eddie Grieve, Equity Markets, ph: 02 9227 0519
 
If you would like further information on the new ASX Equity Research Scheme please contact us on 131 279 or visit our website. 

Copyright 2007 ASX Limited ABN 98 008 624 691. All rights reserved 2007.
The information in this article is intended to provide a general summary only and does not constitute financial product or investment advice. You should consider obtaining independent advice before making any financial and/or investment decisions. Whilst every care has been taken to ensure the accuracy of the information as at the date of publication, ASX makes no warranty with respect to the reliability, accuracy, currency or suitability of content. To the extent permitted by law, ASX excludes all liability. Reference to ‘ASX’ means ‘ASX Limited’, ‘ASX Operations Pty Limited’ and all other related bodies corporate.