ASX flags greater flexibility to facilitate capital raisings for mid- to small-cap companies

ASX proposes to make it easier for companies with a market capitalisation of $300 million or less to raise capital, by lifting the placement capacity limit for mid- to small-caps from 15 to 25 per cent of capital within a 12-month period. Just over half of these mid- to small-caps are resource companies.

These entities will need to provide additional disclosure to shareholders and seek their approval on an annual basis to issue an additional ten per cent of their issued equity over and above the existing 15 per cent limit. The consultation last year by ASX confirmed that the existing market structure of a single board is strongly supported the concept of a second board for small- to mid-caps was not supported.

ASX will continue to operate a single board and Listing Rule framework ... READ MORE

Released by CSA News Update - 11 April 2012