new rules for ipos and ssps

From Norton Rose -lawyers
Today ASX announced finalised listing rule changes that will allow smaller and mid-size companies to issue 25% of their share capital in 12 months, rather than the standard 15% that has long applied to ASX-listed companies.

We see the new capital raising rules as offering world-leading flexibility for companies whose market capitalisation would otherwise require them to seek specific shareholder approval to every meaningful capital raising.

ASX has also relaxed the 'spread test' that applies to IPO applicants, potentially addressing a significant hurdle to first listing and one of the key drivers of backdoor listing activity. Can now be as low as 300 shares if 50% of shares are non related.

THis is good news for our struggling share market