ASX delays listing rule changes

The Australian Securities Exchange has delayed the introduction of tougher listing requirements by three months, after stockbrokers and corporate advisers expressed concern about the changes.

The ASX has proposed a number of changes to tighten the conditions that listing hopefuls need to meet before approval, in an attempt to maintain the integrity of the market.

The new rules were announced in May and were set to come into effect on September 1, however the ASX has deferred the start date for the changes until mid-December.

“ASX is currently assessing the considerable amount of feedback received and discussing it with regulators and stakeholders,” the ASX said in a consultation paper released today.

“ASX expects to release its final version of the rule changes and associated guidance in September or October after it has completed those discussions.”

The rule changes revealed in May included increasing the net tangible assets threshold from $3 million to $5 million; alternatively, a company wishing to list on the ASX would need to have a market value of at least $20 million, up from the previously allowed $10 million minimum requirement.

The ASX also plans to introduce a 20 per cent minimum free float requirement, and also plans to enforce a minimum $1.5 million working capital requirement consistent across all entities admitted under the net tangible assets test.

Other changes also sought to address emerging issues with backdoor listings.

The changes drew concerns from the industry, including 15 local broking, legal and advisory firms which teamed up to put forward their issues with the proposed changes, and to advocate amendments.

The submission was prepared by broking firms Argonaut, Euroz, Hartleys, Patersons Securities and State One Stockbroking, law firms Allion Legal, Bellanhouse Legal, DLA Piper, Gilbert + Tobin, Jackson McDonald, and Steinepreis Paganin, and advisory firms Azure Capital, BDO, FTI Consulting, and RSM.