ASIC Streamlines IPO Process to Revitalise Australian Public Markets

On 10 June 2025, ASIC announced significant targeted initiatives designed to accelerate IPO timelines as part of a two-year trial. These changes come in response to Australia’s declining public company listings and seek to deliver more IPOs and ultimately support economic growth.

Key changes: Key changes announced by ASIC include:

• Pre-lodgement review: eligible entities listing on the ASX via the fast-track process can now lodge a pathfinder prospectus with ASIC 14 days prior to formal lodgement. ASIC will endeavour to complete its review of the pathfinder prospectus in the 14-day period prior to formal lodgement. This change means ASIC will engage with an issuer prior to the exposure period commencing, which decreases the need for supplementary and replacement documents and extensions to the exposure period – meaning IPO timelines could be reduced by up to a week. This shortened timeline is intended to reduce the risk of market volatility and consequential pricing changes, which may impact investor interest in the IPO.
• No-action position: ASIC has also adopted a ‘no action’ position that allows eligible entities to accept applications from retail investors during the exposure period – something normally prohibited. This change is expected to ease the administrative timeline of an IPO, particularly in relation to closing the retail investor component of the raise.

Eligibility: The fast-track process and ‘no action’ relief is not, at least initially, being made available to all companies looking to IPO.  To be able to utilise the streamlined process, an entity must have an expected market capitalisation on listing of at least $100 million and must not be subject to ASX mandatory escrow (or lock-up) provisions. ASX mandatory escrow generally applies to earlier stage companies that do not meet ASX’s “profits” test and which ASX considers do not have an “acceptable track record of revenue”, generally at least $15 million over the last 12 months and at least $20 million in aggregate over the last three years.

Why this matters: Australia’s IPO activity has hit decade-low levels with companies increasingly choosing private markets. These changes aim to make public markets more attractive for companies seeking capital and investors seeking opportunities.

ASIC’s new approach came into effect on 10 June 2025. ASIC has indicated that these changes are the first in a series of regulatory changes it is considering to enhance and improve the attractiveness of Australia’s public markets.

This is a welcome regulatory development and great news for eligible entities considering going public.