Measured by GDP, Australia ranks as the 14th largest economy based on the latest global rankings. Having maintained steady economic growth attributed to the booming supply of raw materials such as iron ore and iron, Australia is now home to several multinational financial services firms. This has made it become a favorite investment destination for global investors.
With a market capitalization of about US$1.5 trillion, the Australian Securities Exchange(ASX) is among the top ten equity markets across the globe. Highly reputed for its integrity, the ASX has attracted many international investors. If you’re looking to list your company on the ASX, you’ll get a global listing and have access to:
•Initial and ongoing funding
•Extended market liquidity
Requirements for listing on the ASX
Shareholding requirements to list on the ASX
When applying for the ASX listing, your company must satisfy one of the following:
•Have a minimum of 400 shareholders each with a share parcel of not less than A$2,000 (US$1,400).
•Have a minimum of 350 investors each with a parcel share of US$1,400, with 25 percent of securities being held by not related to your entity.
•Have a minimum of 300 investors each with a parcel share of US$1,400, with 50 percent of securities being held by parties not related to your entity.
Size requirements to list on the ASX
Your company has to satisfy the following ‘Asset test’ and ‘Profit test’ requirements:
To successfully pass the Asset Test, a non-investment firm must satisfy one of the following to be of listed on the ASX:
1.The net tangible assets of the entity should not be less than $3 million.
2.The market capitalization of the firm should be more than $10 million.
For your firm to satisfy this test, each of the following qualifications has to be met:
1.Its aggregate profit generated for the last three financial years from ongoing operations must have surpassed the $1 million mark.
2.The company’s consolidated profit for the 12 months generated from continuing operations should exceed $400,000. This is counted to the current date and shouldn’t exceed two months before the application date.
What if a company does not meet all the requirements for ASX listing?
It’s important to note that the ASX could still reject a listing application even after a company satisfies all the requirements. However, other companies that do not meet all the requirements may get the listing, as the ASX considers each applicant’s particular circumstances.
How can one get help?
The presence of award-winning equities researchers who provide extensive ASX coverage means the fundamental value of your firm will be well analyzed, and it will not take long before your firm receives the ASX listing.