will it be de-listed?, page-7

re: will it be de-listed? (400 spread) As Carls has suggested, the minimum shareholder spread is 400 although, in some circumstances, 500 is the required spread.

The spread is most relevant when a company does an initial capital raising (ie: IPO) or a supplementary raising (ie: Rights Issue, etc). This is why some:
1)
IPOs struggle to get off the ground (ie: lack the minimum numbers);
2)
others backdoor into ASX listed shells (even if those companies are non-trading, subject to insolvency management, etc); and
3)
others still (particularly with supplementary raisings) struggle to come together due largely to a thinly spread shareholding structure, etc.

Generally, there is also a $ requirement (ie: $2,000 minimum parcel holding). However, this is most relevant to IPO situations (and, maybe, to supplementary raising situations), but is not relevant to falling trade situations involving existing, listed companies.

Listed comapny shares (trading, or non-trading) can also be used to count towards a relevant shareholding spread, as there is no requirement for a minimum number of Australian-resident shareholders. On this basis, provided that an accurately maintained Share Register has been maintained, and shareholders (dormant, or otherwise) can still be properly identified, then existing shareholders will count towards the spread (even if they remain as shareholders in insolvent, listed companies such as TMN).

Of more significant concern to IPO situations is that any shares issued as part of the ASX listing process must have a minimum issue price of $0.20 and any options must have a minimum exercise price of $0.20. This is what occurred with BUY in late 2001, and with ATC in early 2002 (following the Pelican Resources spin-off).

However, once the IPO is away, and an ASX listing has been completed, then companies do not have to maintain the $0.20c issue requirement, as no minimum applies to future issued securities, following completion of the initial listing. That's lucky for companies such as KCG, TNY, ATC or TMS as otherwise, they would all struggle to raise any supplementary capital in the absence of first doing a cshare consolidation (ATC and TMS doing so, KCG and TNY maybe doing so).