Path to going public on markets sped up for | Australian Markets

Companies wanting to checklist on the stock market can be given a fast observe by the company watchdog to go public.

Changes put ahead by the Australian Securities and Investment Commission will imply firms may scale back the time needed so as to take a company public by one week.

The watchdog will now work with firms two weeks earlier than paperwork laying out particulars about an initial public offering are made obtainable to the public.

ASIC says it’ll reduce the risk of potential traders being scared off by unstable markets.

The adjustments are being rolled out as half of a two-year trial to reverse a decline in firms going public on the Australian market.

The quantity of firms going public hit a 20-year low in 2024, with simply 29 initial public choices on the ASX.

That compares with the 240 new listings on the ASX in 2021.

Commission chair Joe Longo stated the adjustments would offer larger confidence within the stock market.

“Creating a more streamlined IPO process underscores our commitment to ensuring our public markets remain attractive to companies and investors,” he stated.

“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.”

The adjustments are being introduced forward of a symposium being held by the commission on Tuesday in Sydney concerning the future of Australia’s markets.

A dialogue paper put out by the commission in February stated the quantity of publicly listed firms had been declining in lots of developed markets over a long time.

“The Australian market is concentrated, with most companies in the financials and mining sectors, and less represented in sectors that will drive growth in our increasingly digital future,” the paper stated.

“Many companies are choosing to stay private where new funding and sell downs are now more accessible, while others are choosing to list in the United States.”

Mr Longo stated additional reforms have been being thought of to increase the quantity of new listings.

“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,” he stated.