Listing of a company means the admission of its shares to the official list of the SIM VSE stock exchange through a formal agreement, making the shares publicly available for trading. The primary objective of admission to the exchange is typically to provide liquidity and marketability to shares, and also to provide a mechanism to access additional capital.
IPO or Capital Raising Listing
A company may be looking to raise new capital in addition to the process of listing its shares on the exchange. Under the IPO process, the company will issue a prospectus and raise capital using that document. The prospectus can state that the securities are to be listed on SIM VSE. All documentation must be given to the SIM VSE within seven (7) days of lodging the prospectus with ASIC. On successful completion of the prospectus and submission of required documentation, the securities can begin trading on SIM VSE.
Compliance Listing
Alternatively, the company may be fully funded but want to list on the stock exchange to take advantage of listing such as:
- greater corporate and investor profile;
- increased liquidity for existing shareholders (secondary market);
- improved valuation or the ability to align employee, management and corporate goals through equity based incentive schemes.
This type of listing, where no new capital is raised as part of the listing process is called a Compliance Listing. Under a Compliance Listing, a company may list securities on SIM VSE if those securities meet the criteria for listing without raising new capital as part of the process.
This is the quickest and most cost effective means to obtain a listing. Issuers seeking a compliance listing should not have raised capital at least three (3) months before listing and may not raise capital three (3) months after listing.
