The Australian Securities Exchange (ASX) has announced a series of proposed reforms to revive the country’s sluggish initial public offering (IPO) market and increase the global appeal of Australia’s capital markets.
In a submission to the Australian Securities and Investments Commission (ASIC) released on Thursday, ASX said the changes would aim to simplify the IPO process, give investors better access, and make listing requirements more flexible. These steps are intended to help the Australian market stay competitive on the international stage.
ASX has been facing pressure from the corporate regulator to speed up and improve the listing process, especially as IPO activity has slowed significantly in recent years. The number of listed companies on the exchange has also dropped. ASX described this decline as part of a cycle rather than a sign of deeper structural issues.
One key proposal is to streamline the IPO timeline. ASX suggested ASIC should limit the exposure period for new listings to just seven days and allow retail investors to submit applications during this period.
Australia’s IPO process has faced criticism from bankers and fund managers for its lengthy regulatory reviews before companies can go public. These delays have discouraged some firms from listing. Other regional markets, such as Hong Kong and Singapore, have started updating their IPO frameworks to stay competitive amid global financial uncertainty.
The ASX is also pushing to reduce the minimum “free float” requirement for new listings and improve the corporate bond market. These changes aim to give companies more flexibility and make it easier for retail investors to participate in the market.
James Posnett, ASX’s general manager of listings, said the proposed changes are meant to make Australian capital markets more attractive compared to global peers and private funding options. “These reforms would also give retail investors better chances to grow their wealth,” he added.
In 2024, IPOs in Australia raised $2 billion, according to LSEG data. However, $1.3 billion of that came from just one listing — the data centre trust Digico.
Market experts say the drop in IPOs is due to global market volatility, the growth of private capital deals, and strict local regulations.
ASX’s proposal is part of a broader effort to re-energize public markets and ensure Australian companies can compete globally when raising capital.
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