RE: ASX listing and possible share offering20 May 2025 14:47
Culpepper, I posted this previously, it may help:
ASX Listing for Internationally Traded Companies: Capital Raising Not Always Mandatory
Companies already listed on an international stock exchange are not invariably required to raise new capital when seeking a listing on the Australian Securities Exchange (ASX). The necessity of a capital raise often depends on the type of ASX listing sought and whether the company can meet ASX's admission criteria through its existing structure and shareholder base.
Australian companies, or overseas companies pursuing a standard ASX listing, must satisfy either a 'profit test' or an 'assets test'. The 'assets test' includes a requirement for at least AUD 1.5 million in working capital. If a company already possesses sufficient working capital to meet this and its stated objectives, a new capital injection may not be needed for this specific requirement. Companies qualifying under the 'profit test' do not have this explicit working capital threshold.
A critical aspect of ASX listing is achieving a minimum shareholder spread – typically requiring a certain number of shareholders each holding a minimum value of shares. While often achieved through an Initial Public Offering (IPO) that involves raising capital, a company with a broad existing shareholder base that meets these ASX requirements might not need to issue new shares. In such scenarios, where a company can satisfy the spread requirements and does not need to raise funds, it may be permitted to list using an information memorandum instead of a full prospectus designed for capital raising.
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