ASX – New Admission Rules
ASX has now released its new rules for admission to the ASX official list.
The key changes are:
- Increasing the threshold for profit test entities to have consolidated profits for the 12 months prior to admission from $400,000 to $500,000
- Increasing the net tangible assets test from $3 million to $4 million
- Increasing the market capitalisation test from $10 million to $15 million
- Spread of at least 300 security holders each holding a parcel of at least $2,000 of securities
- Introducing a 20% minimum free float requirement
- Asset test entities to disclose two full financial years of audited accounts and any significant entity or business that it has acquired in the 12 months prior to applying for admission or that it proposes to acquire in connection with its listing
- Standardising the $1.5 million working capital requirement for those admitted under the assets test.
The new rules commence 19 December 2016.