The Australian Securities and Investments Commission (ASIC) is initiating a two-year trial to simplify the process of joining the Australian Securities Exchange (ASX) and invigorate the IPO market. This move represents the most significant change to listings in nearly a decade. The trial aims to expedite listing timelines by allowing ASIC to informally review IPO documents two weeks before formal lodgment, potentially reducing the overall timeline by a week. This initiative, which was proposed by investment banks including JPMorgan, seeks to reduce deal execution and market volatility risk associated with IPOs.
The measure comes as the IPO market shows early signs of recovery, with companies like Virgin Australia and GemLife preparing for listings. However, Australian IPOs year-to-date total only $US122 million, significantly less than the $US301 million recorded at the same time in 2024. This places 2025 as the lowest year-to-date tally since the start of the COVID-19 pandemic. ASIC’s trial also intends to allow companies to accept retail investor applications earlier in the process, which could permanently change how ASIC oversees the Corporations Act. The regulator is considering further changes, including engaging with the ASX on managing dual listings, to encourage companies like Atlassian and Canva to consider Australian IPOs. These reforms follow similar initiatives in other markets, including the US and the UK.
