Sprinting to an IPO? ASIC trials a streamlined fast-track to the ASX

While Virgin Australia’s return to the ASX in June 2025 was another high-profile listing, it was only the 26^th listing on the ASX in the financial year to 30 June 2025. In the face of the limited number of listings on the ASX in recent years and the willingness of foreign regulators to make it easier to list on overseas exchanges (see this article by our colleagues in the UK about earlier reforms proposed by the UK’s Financial Conduct Authority), ASIC is now trialling a streamlined process for companies to raise money and list in Australia. ASIC hopes that this will more closely align the process for listing on the ASX with the existing efficient secondary capital raising processes that ASIC says are “globally recognised for their speed and efficiency”.^[1]

The regulator’s procedural reform centres on a pre-assessment mechanism that allows certain companies to submit a draft pathfinder prospectus for confidential ASIC review at least two weeks before formal lodgement of the prospectus. This behind-the-scenes evaluation is aimed at preventing the mandatory 7-day exposure period being extended to 14 days. It also has the benefit of reducing the risk of hurried (and often costly) amendments to the prospectus during the exposure period, although ASIC’s initial input received during the preliminary review can still be supplemented with additional input when the prospectus is lodged.

These changes will be supplemented by ASIC’s new class “no-action” position for these prospectuses that will allow these companies to start accepting applications from retail investors under the prospectus during the exposure period. While this remains subject to the usual caveats applying to ASIC’s “no-action” positions (most importantly that it does not prevent third parties or even ASIC itself taking action in the future), this is aimed at making it easier to allocate shares to retail investors as part of the IPO.

Yet for all its promise, ASIC’s streamlined IPO approach comes with a catch: only companies without escrow requirements who are expecting market capitalisations above $100 million can benefit from it. While this is in line with the ASX’s fast-track listing process, this exclusivity undermines the broader mission of market revitalisation, potentially leaving behind innovative smaller enterprises (who could fail to meet either the market capitalisation or no-escrow criteria).

That said, this is a positive, initial step towards increasing the certainty of Australia’s IPO processes at a particularly volatile time in public capital markets. It, and ASIC’s overall commitment to ensuring that Australia’s public capital markets remain attractive to companies and investors, should be seen as factors in favour of Australian companies listing on the ASX, especially compared to more uncertain IPO processes that may be faced by companies who seek listing in other jurisdictions.

Our expert team at Bird & Bird is happy to assist with any questions relating to capital markets. For queries, please contact Chris Clarke, Partner at chris.clarke@twobirds.com and Aaron Chan, Special Counsel at aaron.chan@twobirds.com.