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ASIC Launches Two-year Trial to Streamline IPO Process
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In a move to revitalize Australia’s public markets, the Australian Securities and Investments Commission (ASIC) announced on june 10, 2025, the commencement of a two-year trial for a streamlined Initial Public Offering (IPO) process [[source document]]. This initiative aims to shorten listing timetables and enhance deal certainty, responding to a decline in new listings as companies increasingly opt for private capital. The trial seeks to address concerns about prolonged exposure to market risks under the existing IPO framework.
Key Benefits of the Streamlined IPO trial
The ASIC trial offers several potential advantages for eligible companies seeking to list on the Australian Securities Exchange (ASX). These benefits are designed to make the IPO process more efficient and less susceptible to market fluctuations.
- shorter IPO Timetable: Early ASIC review, combined with a reduced exposure period, enables companies to complete thier IPOs more quickly.
- Reduced Market Risk: The shortened exposure period lessens exposure to market volatility for both issuers and investors.
- Earlier Application Acceptance: Under ASIC’s new “no-action” position,eligible entities can accept investor applications during the exposure period.
Eligibility Criteria for Participation
Not all companies are eligible to participate in this trial. ASIC has set specific criteria to ensure that the streamlined process is applied to appropriate IPOs.
To participate in the trial, entities must:
- Have a projected market capitalization exceeding A$100 million upon listing.
- Not be subject to ASX-imposed escrow requirements.
Did You Know? Escrow requirements often restrict the ability of major shareholders to sell their shares for a specified period after the IPO, impacting liquidity.
The Current IPO Challenge
Under the current framework, listing entities undertake a bookbuild process to gauge investor sentiment and set the offer price before formally lodging their IPO document with ASIC. Once lodged,the documents become public,triggering a public exposure period that typically lasts around 14 days. During this time, companies cannot accept applications from investors, leaving the IPO vulnerable to market volatility and deal execution risks.
what’s Changing with the New Process?
The streamlined process allows eligible entities to submit a pathfinder prospectus or product disclosure statement to ASIC for informal review up to 14 days before formal lodgement. A pathfinder prospectus is a draft document used to facilitate securities pricing. The initial pathfinder prospectus does not need to include pricing information, enabling issuers to proceed with the bookbuild process while ASIC conducts its review. ASIC aims to complete
