Asx Listing Requirements Question 2022

Running head: ASX LISTING REQUIREMENTS
ASX Listing Requirements
Name of the Student
Name of the University
Author Note

ASX LISTING REQUIREMENTS1
Table of Contents
Question a....................................................................................................................2
Question b....................................................................................................................5
Question c.....................................................................................................................7
Question d....................................................................................................................9
References.................................................................................................................10

ASX LISTING REQUIREMENTS2
Question a
Listing requirement of ASX
To get listed in the Australian stock exchanges the companies have to follow
some specific requirement which are also known as the requirements. These listing
requirements are made to ensure that the ASX can maintain quality in its operations
and to provide correct and reliable information’s to the investors. The minimum
criteria that are essential to be disclosed by the companies includes, the structure
and size of the organisation, free float and number of shareholders.
For all these categories there are some general requirement which are
specified by the ASX these are stated in the tabular form
Criteria Requirement
Total number of shareholders There should be minimum 300 non-
affiliated investors
Free float 20%
Company size based on profit test
Company size based on asset test
For continuous 3 years the company
should make a profit of $ 1 million from
its operating activities and a
consolidated profit of $500000 form its
continuous business activities on the
last 12 months.
The value of the net assets should be

ASX LISTING REQUIREMENTS3
$4 million or
The market capitalisation should not be
less than 15 million
Beside these common rules there are some other points which are to be
considered for getting listed in the Australian securities exchange these are
explained below
Working capital requirement
If a company is seeking to get listed under the profit test method then no
working capital requirement is essential for such companies.
If the company wants to get listed by using the asset test then it should have a
working capital of 1.5 million.
This amount of working capital mist be available after considering the first
years budgeted administration cost and the acquisition cost of assets that are
referred in its prospectus.
The prospectus should also provide a statement in which it is to be declared
that the company has enough working capital to meet its day to day activities
(Shimeld Williams and Shimeld 2017).
Ongoing reporting requirements
 In Australia financial reports are to be prepared on half yearly and annually.
 The companies which does not earn profit also have to file quarterly cash flow
statements