Considerations before listing
Deciding whether to list your company on an exchange is an important decision. There are many factors that need to be examined when preparing a company for listing. Before embarking on listing you should consider whether your company has:
- A strong, long-term strategy for commercial growth that can be easily explained to investors
- A well-rounded senior management team and board of directors
- Reliable and trusted advisors
- Robust financial, operational and information systems capable of meeting the additional requirements placed on listed companies
As part of reaching an informed decision about whether it is appropriate and feasible to list a company, all factors which could impact upon the company must be carefully considered.
Requirements
To list on SIM VSE a company needs to satisfy the requirements of the SIM VSE Listing Rules. The SIM VSE Listing Rules have been specifically developed for the market sector while also meeting the regulatory requirements of the Australian Securities and Investments Commission (ASIC) and under the Corporations Act.
The following table summarises some of the key criteria a company will need to meet to be eligible for listing:
| Number of Shareholders | Company size |
|---|---|
| Minimum 50 investors @ A$2,000 | A$0.5 million net profit over past 3 years or A$0.5 million Net Tangible Assets or A$1 million market capitalisation on listing |
What advice and assistance will be required?
The advice of professional advisors may be required to assist the company in making an informed decision about whether to list, preparing for the company for listing and providing assistance to the company after listing with meeting ongoing listing requirements.
Will a prospectus be required?
A company wishing to list its securities on the SIM VSE Official List must issue either a Prospectus (or an Information Memorandum) that complies with the relevant provisions of the Corporations Act.
What does the listing process involve?
The listing process can be divided into four stages:
- Pre-Application – Appoint advisors and seek advice. At this stage a company should discuss its application with SIM VSE and other matters that may impact upon its application;
- Application – A company seeking admission to the SIM VSE Official List of companies must prepare the prescribed application supported by any other documents required. This information should then be submitted to SIM VSE with payment of the listing fees;
- Lodgement of Application – Having formally received the application and supporting information, SIM VSE will be in a position to ask any questions that arise following an examination of the application, registered prospectus or information memorandum, and will formally commence processing the listing application;
- Pre-Quotation – if a company's application is successful the company will be granted admission to the SIM VSE Official List. Admission to the SIM VSE Official List is conditional upon the company applying for quotation of its main class of securities.
