As mentioned in previous articles, (ASX), the Australian stock exchange, is Australia's leading stock exchange, with more than 2000 companies listed in ASX, including Chinese-backed companies. Today, our article will focus on the process of listing on the Australian Stock Exchange and the listing criteria.
ASX is directly regulated by Australian Securities Commissioner (ASIC). All companies are subject to formal listing permits on the Australian Stock Exchange. The Australian Stock Exchange listing rules (the "listing rules") set out the most basic entry conditions for a company to be listed on the ASX. The applicant company must meet all prerequisites. It is worth noting that ASX proposed last year to change the listing criteria, raising the listing standards. The following is an overview of the latest listing criteria:
Note: the above table is a general guide to listing requirements and is not an exhaustive listing requirement. Meeting the above conditions does not guarantee the smooth passage of the listing application. For detailed listing rules, see: http://www.asx.com.au/regulation/rules/asx-listing-rules.htm
In addition, the reputation and character requirements of listed companies, ASX also has provisions. The directors of a company applying for a IPO listing must apply to the state organs of each of the countries in which they have resided in the past 10 years for proof of non-criminal record and proof of absence of bankruptcy record, and issue a statement as required by law, Confirm that you have never been disciplined or enforced by any stock exchange or regulatory authority.
In the case of a foreign company, a foreign entity applying for listing on the Australian Stock Exchange must apply for the registration of a foreign company in accordance with the provisions of the Australian Federal companies Act 2001 (the companies Act).
If you meet the prerequisites for the listing of ASX, then you can look at the process of listing in ASX. Simply put, listing in ASX can be divided into seven major steps:
(a) engagement of consultants
Professional consultants generally include: executive managers or corporate advisers, investment banks and / or stockbrokers, lawyers, accountants, and even consultants who need to provide IPO expert reports
(II) preparation of prospectus and due diligence
While drafting the prospectus, the due diligence process shall be carried out. According to the Company Law, the prospectus must contain all the information that the investor and his or her professional consultants reasonably need to know in order to make an informed assessment of the following:
Due diligence is designed to help ensure that the prospectus complies with legal requirements and that any party that may be held liable is legally dependent on due diligence defences.
(III) initiation of institutional marketing
The Company Law severely restricts the issuance of IPO bulletins before submitting a prospectus to ASIC. However, the law allows certain marketing activities to institutional investors, including IPO roadshows. It's a series of meetings between companies, investment bankers and institutional investors aimed at attracting interest in stock offerings.
(4) submit the prospectus to ASIC
The seven-day public review period is calculated from the date of submission. During this period, the prospectus is open to public review and comment, and during that time the company is not allowed to accept any subscription applications for the issue.
After the end of the public review period, investors can accept applications for subscription. Thereafter, if ASIC has questions about the disclosure of the prospectus, it has the right to issue a temporary and / or final order to suspend the issue.
(e) submit an application for listing to the Australian Stock Exchange
Within seven days of submitting the prospectus to ASIC, submit a formal listing application to the Australian Stock Exchange. In general, AFC will complete the examination and approval of listing applications within six weeks.
(VI) Marketing and subscription period
The subscription period for retail investors begins after the end of the public review period and is generally open for three to five weeks.
(VII) closure of subscription
The last step is to close the subscription, complete the distribution of the stock, and start trading.
In general, if the company that wants IPO to go public is fully prepared and there is no unusual complexity in the IPO process, the listing can be completed within 19 weeks.
This article provides only a brief introduction to the minimum standards and procedures for listing on ASX, see the Australian Stock Exchange listing Guide (Chinese version): http://www.asx.com.au/documents/products/minterellison_listing_guide_chinese.pdf
