The AustralianSecurities Exchange is reportedly planning to tighten its listing criteria,which could block early-stage tech companies with low revenue.
The ASX and the corporate regulator are considering newadmissions laws that could raise the financial requirements for companies tolist, The Australian Financial Reviewreported May 9. The move would apply to standard IPOs as well as backdoor listings,and could keep high-risk companies from going public to raise money.
According to the report, 45% of the 105 tech company floatson the ASX over the past two years have had revenue of less than A$1 million,while four out of six upcoming tech listings have less than A$140,000 inrevenue.
As of May 10, US$1 wasequivalent to A$1.36.