Following an extensive consultation period, which began on 12 May 2016 with the release of the consultation paper ‘Updating ASX’s Admission Requirements for Listed Entities’ which set out a number of proposed changes to the ASX listing admission requirements, the final ASX admission requirements were released today.
The key listings admission rule changes are:
- For profit test entities, there is an increase in the requirement for consolidated profits for the 12 months prior to admission from $400,000 to $500,000. Consistent with the consultation proposal.
- An increase in the net tangible assets test (NTA) from $3 million to $4 million. Down from the proposed increase to $5 million.
- An increase in the market capitalisation test from $10 million to $15 million. Down from the proposed increase to $20 million.
- A new 20% minimum free float requirement. Consistent with the consultation proposal.
- A single tier spread test requiring at least 300 security holders each holding at least $2,000 of securities. Adjusted from a market capitalization-based test.
- New audited accounts requirements for assets test entities requiring the disclosure to the market of 2 full financial years of audited accounts for the entity seeking admission and any significant entity or business that it has acquired in the 12 months prior to applying for admission or that it proposes to acquire in connection with its listing. Down from the 3 years proposed.
- A standardised $1.5 million working capital requirement for all entities admitted under the assets test. Consistent with the consultation proposal.
The ASX Listing Rules amendments will come into effect on Monday, 19 December 2016, subject to the normal regulatory clearance process.