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| Australian Stock Exchange Listing Rule Changes |
| Amendments to the Australian Stock Exchange Listing Rules came into effect on 1 September 1999. Further amendments are currently under review and are expected to apply from 1 July 2000. |
Last year's changes, which were aimed at reducing impediments to smaller to medium size enterprises and technology businesses, relate principally to ASX admission requirements. The changes relating to admission are summarised below:
- A market capitalisation test of $10 million has been added. This test will provide an alternate option to the existing net tangible assets test of $2 million and the profit test of $1 million.
- Businesses that are unable to meet the profits test are no longer required to be in a position in which they are likely to generate revenue within three years of listing.
- The binding contracts requirement in the net tangible assets test has been relaxed.
- An alternative spread test has been added. The alternative test requires 400 holders with a parcel of $2,000 of securities each, and 25% held by non-related parties, whilst the existing spread test requires 500 holders with a parcel of $2,000 of securities each.
The ASX has released an exposure draft containing further changes to its listing rules, which are expected to apply from 1 July 2000. A copy of the draft, which is currently being reviewed can be downloaded from the ASX web site.
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