The listing process

Download an overview of the ASX listing process

STEP 1 | APPOINT YOUR ADVISERS

An experienced team of advisers is essential to the success of your IPO.
Professional advisers typically include:

• Lead manager (investment bank/corporate adviser/stockbroker)
• Lawyer
• Accountant

ESTIMATED TIME REQUIRED - 1 WEEK?

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?

STEP 3 | COMMENCE INSTITUTIONAL MARKETING

The Corporations Act strictly limits advertising your IPO before you lodge your prospectus with the Australian Securities and Investment Commission (ASIC).

However, certain marketing activities can be undertaken to institutional investors, including IPO roadshows. These are a series of meetings between your company, investment bankers and institutional investors which are used to generate interest in the offer.

ESTIMATED TIME REQUIRED: 3 WEEKS?

STEP 4 | LODGE YOUR PROSPECTUS WITH ASIC

An ‘exposure period’ of seven days starts from the date of lodgement. During this time your prospectus is made available for public review and comment and your company cannot accept any applications under the offer.

ASIC can extend the exposure period to up to fourteen days after lodgement if it needs time to review the prospectus in detail.

Applications from investors can be processed after the end of the exposure period. After this period ASIC has the power to issue an interim and/or final order to stop the offer if ASIC has concerns about the disclosure in the prospectus.

ESTIMATED TIME REQUIRED: 2 WEEKS?

STEP 5 | ASX PROCESSES YOUR LISTING APPLICATION

You must lodge your formal listing application?with ASX within seven days of lodging your prospectus with ASIC.

ASX typically reviews and approves your application within six weeks.

ESTIMATED TIME REQUIRED: 6 WEEKS

STEP 6 | OFFER STARTS AND YOU COMMENCE MARKETING TO RETAIL INVESTORS

The offer to retail investors starts after the exposure period and usually is open for a period of three to five weeks.

ESTIMATED TIME REQUIRED: 3 - 5 WEEKS?

STEP 7 | OFFER CLOSES, LISTING ON ASX AND TRADING COMMENCES

In the final step, the offer closes, shares are allocated, your company is listed on ASX and trading commences.

ESTIMATED TIME REQUIRED: 2 WEEKS?