As we predicted in our GRT Alert last Thursday, following the NZX releasing its relief package, ASX and ASIC have now provided relief to Australian listed companies with their separate announcements on 31 March 2020.

The following are important updates and changes that apply to Australian listed companies, with our detailed coverage available here:

  • ASIC is helping Australian listed companies raise capital quickly by giving temporary relief to enable certain low doc offers to be made to investors, even if they do not meet all of the normal requirements. This applies until further notice is given by ASIC.
  • ASX is permitting a temporary waiver of the 1:1 cap on non-renounceable entitlement offers in listing rule 7.11.3.
  • ASX is permitting a temporary uplift in the 15% placement capacity in rule 7.1 to 25%, subject to there being a follow-on accelerated pro rata entitlement offer or a Security Purchase Plan offer.
  • ASX will permit an entity to request 2 consecutive trading halts, allowing it a total of up to 4 trading days halt to consider, plan for and execute a capital raising.
  • ASX has also offered practical guidance for the disclosure obligations of Australian listed companies.
  • ASX’s temporary waivers will apply until 31 July 2020, unless extended by ASX.

The relief from ASX and ASIC will bring much needed assistance to Australian listed companies that need to raise funds from investors urgently because of the impact of COVID-19.

We will provide continual updates should the relief change, or if ASIC or ASX make any further announcements.

Please contact Glenn Vassallo (0422 857 760) or Scott Standen (0447 790 009) to keep updated on capital raisings during this time.