Entities listing on the ASX via the fast-track process now have access to a shorter initial public offering (IPO) timetable designed to reduce deal execution risk as part of a two-year trial announced by ASIC today.
ASIC will now informally review eligible offer documents two weeks prior to public lodgement, which could reduce the IPO timetable by up to a week.
The changes mean ASIC will engage with an issuer prior to the exposure period, which decreases the need for supplementary and replacement documents and extensions to the exposure period. This also reduces the risk that market volatility and consequential pricing changes may impact investor interest in the IPO.
The changes also include a 'no action' position by ASIC that now allows eligible companies to accept retail investor applications during the public exposure period for new listings, cutting down the administrative timeline of the IPO process.
ASIC Chair Joe Longo said the initiatives had been developed in response to the decline in Australian IPOs and public companies, highlighted in ASIC's recent discussion paper on the evolving dynamics between public and private markets, and form part of the agency's regulatory simplification focus.
'Creating a more streamlined IPO process underscores our commitment to ensuring our public markets remain attractive to companies and investors.
'Greater deal certainty for companies should help deliver more IPOs, which means more investment opportunities so companies can expand, increase jobs and ultimately economic growth.
'Our initial public offerings are the lowest they have been in over a decade, and companies are de-listing. Meanwhile, our secondary capital raising settings continue to be globally recognised for their speed and efficiency.
'Earlier this year, we outlined our concerns for the future of public markets and called for actionable ideas to ensure our markets remain open, efficient and attractive to investors. I'm proud of how quickly we've been able to work with industry participants and mobilise our teams to respond to actionable ideas.
'While we do not see regulatory settings as the silver bullet, we have received lots of ideas and are considering further regulatory adjustments to support a strong and well-functioning market,' Mr Longo said.
The changes still allow for concerns to be raised during the public exposure period and the issue of shares and quotation will still only occur once the exposure period has ended.
ASIC's new approach comes into effect today, and is the first in a series of regulatory changes it is considering to enhance and improve the attractiveness of Australia's public markets.
Background
On 26 February 2025, ASIC released a discussion paper which explored the changing dynamics in capital markets in Australia and abroad, including declining listings on public markets, the rapid growth in investment capital allocated to private markets and the growing significance of superannuation funds in markets.
Trial process
The trial process is available to entities seeking the ASX fast-track listing (Eligible Entities / Eligible Companies) as part of a two-year trial starting today. ASX Fast-track is available to entities that will have a market capitalisation greater than $100 million upon listing and no ASX imposed escrow.
Eligible Entities can provide a pathfinder prospectus or pathfinder PDS to ASIC on a confidential basis, at least 14 days prior to formal lodgement for review. A pathfinder prospectus or PDS is a draft document distributed to professional or sophisticated investors which does not seek subscriptions from retail investors and is designed to facilitate the pricing of securities.
ASIC will endeavour to complete its review of the Pathfinder in the 14-day period prior to formal lodgement. ASIC will then generally not need to extend the 7-day exposure period to 14 days after lodgement other than where material new information comes to light or is included in the lodged prospectus / PDS. ASIC will retain its ability to use stop orders up until listing.
Conditions of trial
- The entity must be eligible for the ASX Fast Track application process.
