STEP 2 | PREPARE FOR YOUR IPO
This includes drafting the prospectus, listing application and other required documents and undertaking a due diligence process. In some cases, it may also include applying to ASX for in-principle advice on the suitability of the company for listing on ASX.
The Australian Corporations Act contains a general disclosure test for prospectuses. It stipulates a prospectus must contain all the information that investors and their professional advisers would reasonably require to make an informed assessment about:
- The rights and liabilities attaching to shares offered,
- The assets and liabilities, financial position and performance, profits and losses and prospects of the share issuer, smf?
- A prospectus that will usually include key information about the company’s business model, risks, management, financials, and details of the offer itself.
The due diligence process is guided by a committee, comprised of representatives of the company and other parties potentially liable under the prospectus. This is to help ensure the prospectus meets legal requirements, and that any parties with potential liability can rely on due diligence defences in law
ESTIMATED TIME REQUIRED: 9 WEEKS?