(Reuters) -The Australian Securities Exchange (ASX) on Thursday unveiled a series of proposed reforms aimed at enhancing the global appeal of Australia’s capital markets and revitalising its subdued initial public offering (IPO) landscape.
In a detailed response to the Australian Securities and Investments Commission (ASIC), the exchange operator said it would focus on streamlining the IPO process, broadening investor access, and improving listing flexibility to make the local market more competitive internationally.
The ASX has been under pressure from the corporate regulator to take a more proactive role in facilitating quicker, more efficient listings amid a prolonged slump in IPO activity.
The number of listed companies on the ASX has fallen in recent years, a trend the exchange described by the operator as largely cyclical rather than structural.
The move mirrors efforts in other regional markets such as Hong Kong and Singapore, which have begun reviewing their own IPO frameworks to regain lost ground amid global financial market volatility.
The ASX advocated for a more streamlined listing process and urged firms to clarify regulation around financial forecasts in their prospectuses.
The bourse operator also asked for reducing the required minimum level of “free float” for new listings coupled with a more efficient and accessible corporate bond market.
The changes in the bond market would improve flexibility for issuers and increase access for retail investors.
Initial public offerings raised $2 billion in 2024, LSEG data showed, of which $1.3 billion was raised by a single company – data centre trust Digico .
Dealmakers have pointed to volatile global conditions, a rise in private capital transactions, and rigid IPO regulations as key factors behind the slowdown.
ASX’s proposals come as part of a broader push to restore momentum to public markets and ensure Australian companies remain competitive in attracting capital.
(Reporting by Kumar Tanishk in Bengaluru; Editing by Nivedita Bhattacharjee)
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