ASX Plans Crackdown On Listings By Low-Revenue Tech Start-Ups
The Australian Securities Exchange is looking to tighten its admission rules in a move that could see technology start-ups with limited revenue barred from listing on the exchange.
In the past two years there have been no fewer than 105 tech company floats on the ASX – and 45 per cent of them have had revenue of less than $1 million, according to a Fairfax report.
Indeed, four of six upcoming tech company listings are said to have less than $140,000 in revenue – and two, Koolsee New Media and Shark Mitigation – reportedly have no revenue at all, but are raising $16 million and $4 million respectively via their ASX floats.
The ASX expects to publish a consultation paper next week on the proposed changes to the admission rules.