The ‘Profit Test’The ASX Listing Rules provide that to satisfy...

The ‘Profit Test’
The ASX Listing Rules provide that to satisfy the “profit
test”, a company must satisfy criteria in respect of each of
the following:
 being a going concern
 its business activity
 its audited financial statements
 its last three years’ aggregated profits
 its last year’s profits
 providing a directors’ statement.

Three years profit
The company’s aggregated gross profit from continuing
operations for the last three full financial years must have
been at least $1 million.
Last year’s profit
The company’s consolidated gross profit from continuing
operations for the last 12 months (to a date no more than
two months before the company applies for admission)
must be more than $500,000.


The ‘Assets Test’
The ASX Listing Rules provide that to satisfy the “assets
test”, a company must satisfy criteria in respect of each of
the following:
 net tangible assets/market capitalisation
 liquid assets
 working capital
 financial statements and audit report.

Further information on each of these criteria follows.
Net tangible assets/market capitalisation
The company must have either:
 net tangible assets at the time of admission of at least
$4 million, after deducting the costs of fund raising, or
 a market capitalisation post initial public offering (IPO)
of at least $15 million (normally based on the issue or
sale price under the prospectus).