28 September 2020

Compliance update: Capital raising relief extended

This month, ASIC extended its temporary relief for capital raisings aimed to assist listed entities affected by the COVID-19 pandemic to raise capital in a quicker and less costly way without undermining investor protection. The temporary measures were due to expire in October 2020. The temporary measures will now expire on 1 January 2021.

The relief was originally announced on 31 March 2020 and enables certain ‘low doc’ offers (including rights offers, placements and share purchase plans) to be made to investors without a prospectus, even if they do not meet all the normal requirements.

In its announcement, ASIC stated it will continue to monitor the appropriateness of these temporary relief measures in light of the impacts of COVID-19 on capital markets …and if appropriate to end the relief before the expiration dates or to further extend it. In making this further assessment, ASIC will consider the:

  • extent of the capital raising activities conducted in reliance on the legislative instruments;
  • length of the suspensions required in order to execute a capital raising in the current environment;
  • level of market volatility; and
  • extent and impact of any easing of restrictions implemented by state and federal governments in response to COVID-19.

 

5 September 2019

ASIC ups limit for Share Purchase Plans in a win-win for investors and corporates

RON CAMERON, SENIOR ADVISER, INVESTOR RELATIONS Markets regulator, The Australian Securities and Investment Commission (ASIC), has doubled the amount that retail investors can contribute to Share Purchase Plans. The change is the result of ASIC updating the Class Order that defines how ASX listed companies can issue shares, via a SPP, to registered shareholders without […]

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3 September 2018

Deal Flow – Retail Investors Have a Point of View

Victoria Geddes, Executive Director Post results reporting season is a time when investment banks start engaging their clients, in advance of the year’s end, to get mergers, spin-offs and takeovers off and running. Witness the recent TPG and Vodafone merger as well as the Coles spin-off from Wesfarmers. The merits of engaging in Proxy Solicitation […]

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2 November 2016

ASX Updates Admission Requirements for Listed Entities

Following an extensive consultation period, which began on 12 May 2016 with the release of the consultation paper ‘Updating ASX’s Admission Requirements for Listed Entities’ which set out a number of proposed changes to the ASX listing admission requirements, the final ASX admission requirements were released today. The key listings admission rule changes are: For […]

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5 October 2016

ASIC takes a close look at social media use in capital raisings

BEN REBBECK, EXECUTIVE DIRECTOR Oct 5, 2016 On 19 September 2016, ASIC reported on its review of the marketing of initial public offerings to retail investors. The notable feature of this review is that ASIC is now taking a close look at the marketing capital raisings via social media and other platforms, in addition to […]

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7 September 2016

Timing is Everything When Raising Capital

RON CAMERON, SENIOR ADVISER Thinking of undertaking a capital raising in the near future? If you are a larger company, you have probably had a protracted series of intense discussions on the topics of debt versus equity, placement followed by share purchase plan (SPP), entitlement offer, renounceable versus non-renounceable, pricing, underwriting, sub-underwriting, even project nicknames […]

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