Listing Steps

EASX has created a co-operative approach to listing companies. Most exchanges require companies to complete all work before making an official application to the exchange. This means that unsuitable companies may have spent hundreds of thousands of dollars on advisors and many hundreds of hours on a process that was never appropriate. In other instances, good companies make simple choices early in the process, which ultimately prevent listing. For example, an otherwise listing ready company may have used an inappropriate auditor as determined by the exchange. EASX aims to eliminate these issues to ensure that companies, investors and the exchange is fully informed and operative as a responsive regulatory environment.

Step 1 – INTENTION TO LIST

A company should begin by completing and intention to list form and providing a one page summary of their company and its activities. This form should include a brief description of the company’s business, number of shareholders, market capitalisation, yearly turnover and profit for the last three years. It should also specify the corporate structure of the company, including the place(s) of its registration.

EASX will review the initial application and inform the company whether it is an appropriate candidate for listing. If it is, EASX will provide a recommendation or list of authorised advisors to guide the remainder of the process.

Step 2 – APPOINTMENT OF AUTHORISED ADVISOR

The company will need to appoint an Authorised Advisor to oversee the listing process. Authorised Advisors are companies that have been specifically trained and selected by EASX for their expertise and familiarity with the EASX listing requirements and process. The Authorised Advisor, once appointed, will do a preliminary review of the company before submitting a preliminary report to EASX.

EASX will review the report and the appointment of the Authorised Advisor. EASX will provide a certificate of approval of Authorised Advisor appointment, giving companies clarity on their continued efforts.

Step 3 – APPOINTMENT OF PROFESSIONAL TEAM

The company, together with the Authorised Advisor, will appoint appropriately qualified lawyers and auditors. Depending on the nature of the listing, the company and Authorised Advisor may also appoint book runners, investment advisors, fundraisers, public relations firms, underwriters, credit rating agencies or other professionals. The professional team will be provided to EASX by the Authorised Advisor.

Where EASX is unfamiliar with the professional firm being used, it may request that firm undertake an application to EASX for review and approval. If the professional firm is able to demonstrate sufficient expertise and credibility, it will become an approved EASX firm. At the conclusion of this process, EASX will provide a certificate of approval for professional advisors.

Step 4 – MANAGEMENT AND LEADERSHIP

The company will then consider its directors and officers. Many companies will need to reconsider the nature of their board prior to listing. This is particularly the case where listing may be part of a broader strategy of international expansion. The only firm requirements of EASX are that the board contains at least three members and that at least one must be proficient in spoken and written English. Other than these requirements, EASX will assess the board and management team based on industry experiences, governance capabilities and financial acumen.

If EASX is satisfied that the board is capable of managing a listed entity, it will provide a certificate of approval for the management and leadership team.

If EASX believes there is need for further improvement, it may request appointment of further board members, or the completion of courses to provide the additional skills and knowledge required.

Step 5 – AUDIT & EXPERT’S REPORT

The Company will then proceed to audit. The audit will typically be done at the same time as the preparation of the Independent Expert’s Report. These are typically done by two separate divisions within the same firm, but this does not necessarily have to be the case.

The Auditors will prepare three years of audited reports, which will be submitted by the Authorised Advisor to EASX. EASX will review the audited financial documents and, if deemed appropriate, issue a certificate of approval for accounts.

Step 6 – LEGAL DUE DILIGENCE

The Company may complete this step at the same time as step 5. The company’s law firm will prepare a legal due diligence report identifying risks within the company. This will be provided by the Authorised Advisor to EASX. If deemed appropriate, EASX will issue a certificate of approval for legal due diligence.

Step 7 – DRAFT PROSPECTUS

The Company will typically complete a draft prospectus during steps 5 and 6. Following the issuing of the certificate of approval of company accounts and certificate of approval of legal due diligence, the company will finalise and prepare a final draft of the prospectus. Once the prospectus is in draft but non-verified form, it may be submitted by the Authorised Advisor to EASX. EASX will undertake a thorough review of the prospectus and, if appropriate, issue a certificate of approval for prospectus content.

Step 8 – FINAL SUBMISSION

The Company will then verify the prospectus and finalise all application forms. Once complete, the application is made to EASX. EASX will provide the company with a listing code, and present the prospectus and appropriate documentation to the regulator. As EASX has been heavily involved in the process and has verified each step, EASX will have confidence in the applications to the regulator and provide advocacy for the listing company. This greatly reduces the risk that the company may be rejected at the regulatory level.

Once regulatory approval has been provided, the company will be admitted to the official list of EASX.