Australia Moves to Speed up IPO Process to Counter Listings Slump
- ASIC started a two-year trial on Tuesday to accelerate IPOs on the ASX by allowing early confidential prospectus submissions and faster retail investor access.
- The trial responds to a 20-year low in IPOs with only 29 listings in 2024, down from 240 in 2021, amid concerns over market attractiveness and exits.
- The changes aim to cut the 20-week IPO process by up to one week, reduce market volatility risks during exposure, and lessen administrative burdens.
- ASIC Chair Joe Longo emphasized that simplifying the IPO process reflects their dedication to maintaining an appealing and competitive public market for both businesses and investors.
- ASIC plans further regulatory adjustments since streamlining IPOs is not a silver bullet, intending to support a stronger and well-functioning market.
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Australia regulator trials faster IPO process as listings hit decade low
Australia's securities regulator said on Tuesday it would trial changes to speed up initial public offerings that are at a decade low by implementing recommendations from earlier reviews and allowing faster access for retail investors.
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