Australia regulator trials faster IPO process as listings hit decade low

FILE PHOTO: A board displaying stock prices is adorned with the Australian Securities Exchange (ASX) logo in central Sydney

Mon, June 9, 2025

SYDNEY (Reuters) -Australia's securities regulator said on Tuesday it would trial changes to speed up initial public offerings that are at a decade low by implementing recommendations from earlier reviews and allowing faster access for retail investors.

The Australian Securities and Investments Commission (ASIC) said the changes could shave as much as one week off the typical 20-week IPO process and reduce deal execution risk.

The trial will begin on Tuesday and last for two years, the regulator said.

"Creating a more streamlined IPO process underscores our commitment to ensuring our public markets remain attractive to companies and investors," ASIC Chairman Joe Longo said in a statement.

Longo said the funds raised through IPOs were at the lowest level in more than a decade, with only A$4.2 billion ($2.74 billion) raised last year compared to A$22.9 billion in 2014.

ASIC's new measures come just days after Virgin Australia launched a closely watched A$685 million IPO that attracted strong investor demand.

ASIC said the changes applied to companies seeking to list on the Australian Securities Exchange (ASX) through "fast-track" status, with a projected market capitalisation above A$100 million and no ASX-imposed escrow.

Most Australian IPOs are carried out through a front-end book-building process, which means the price is set and investor bids are taken ahead of the prospectus being reviewed and approved by Australian regulators.

ASIC and the ASX have been under pressure to speed up the IPO vetting process, to reduce the time investors are exposed to market fluctuations while a prospectus is under review.

ASIC said the changes applied to companies seeking to list on the Australian Securities Exchange (ASX) through "fast-track" status, with a projected market capitalisation above A$100 million and no ASX-imposed escrow.

Most Australian IPOs are carried out through a front-end book-building process, which means the price is set and investor bids are taken ahead of the prospectus being reviewed and approved by Australian regulators.

ASIC and the ASX have been under pressure to speed up the IPO vetting process, to reduce the time investors are exposed to market fluctuations while a prospectus is under review.