ASIC introduces changes to fast-track IPOs on the ASX
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The news: ASIC says it has agreed on new changes that should cut a week from the IPO approval process for companies looking to float on the ASX.
The context: As the corporate regulator reviews public and private markets, ASIC has signalled it will trial changes for the next two years in order to streamline IPOs and reduce the risk of market volatility.
ASIC will now informally review offer documents two weeks before public lodgement, a move it says will expedite floats by one week. To do this, it will engage with issuers earlier to reduce the administrative burdens on companies.
It will also allow eligible companies to accept retail investor applications during the public exposure period.
ASIC said the changes were effective immediately and revealed that it was considering making further improvements.
What they said: ASIC chair Joe Longo said the changes were to encourage IPOs during a challenging period for new listings.
"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," Longo said, noting ASIC had fielded "actionable ideas" from the market.
"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."
The source: ASIC
