Investing
How to List on the ASX: A Founder’s Guide to IPO in Australia
Learn how to list on the ASX with this founder-focused IPO guide. Understand listing requirements, costs, timelines, and the difference between the profit and assets test. Explore what it takes to go public in Australia, from preparing a prospectus to meeting ongoing compliance obligations after listing.
For many Australian startups and growth-stage businesses, listing on the Australian Securities Exchange (ASX) is a major milestone. An Initial Public Offering (IPO) allows companies to raise capital, improve credibility, and provide liquidity to early shareholders.
Australia remains an active IPO market. According to ASX data, the exchange has consistently ranked among the top global markets for IPO activity, particularly across mining, technology, and healthcare sectors.
While listing activity slowed between 2023 and 2025 due to market conditions, the ASX continues to offer strong access to institutional and retail investors.
The IPO process involves meeting financial thresholds, preparing disclosures, raising capital, and complying with ongoing regulatory obligations.
What Is the ASX IPO Process?
An IPO is the transition of a private company into a publicly traded entity listed on the ASX.
Typical ASX IPO Timeline
| IPO Stage | Estimated Time |
|---|---|
| Planning and advisor selection | 1–2 months |
| Financial audits and due diligence | 2–4 months |
| Prospectus preparation | 1–2 months |
| Fundraising and roadshow | 2–3 weeks |
| ASX approval and listing | 1–2 weeks |
Total timeframe:
Most IPOs take 6 to 12 months, depending on business readiness and market conditions.
Delays often arise from incomplete financial records, governance gaps, or weak investor demand.
ASX Listing Requirements
Companies must meet minimum admission standards under the ASX Listing Rules.
Shareholder Requirements
A typical ASX listing requires:
- At least 300 non-affiliated shareholders
- Minimum AUD $2,000 per shareholder
- Adequate public float (generally around 20%)
The ASX also assesses governance standards, financial position, and the quality of management.
Profit Test vs Assets Test
Companies qualify under one of two pathways.
Profit Test
Used by established businesses.
- Minimum AUD $1 million aggregate profit over three years
- At least AUD $500,000 profit in the last 12 months
Assets Test
Common for startups and growth-stage companies.
- At least AUD $5 million in net tangible assets, or
- At least AUD $15 million market capitalisation
- Sufficient working capital
Comparison
| Requirement | Profit Test | Assets Test |
|---|---|---|
| Profitability | Required | Not required |
| Startup suitability | Low | High |
| Typical users | Mature companies | Growth companies |
Most startups list under the assets test, relying on growth potential rather than earnings.
What Is a Prospectus?
A prospectus is the primary disclosure document used to raise capital and must comply with ASIC regulations.
It includes:
- Business overview and strategy
- Financial statements
- Risk disclosures
- Management details
- Use of funds
The document is legally binding and must present accurate and complete information to investors.
Financial Audits and Disclosure Requirements
Before listing, companies must prepare audited financials and establish governance systems.
Core requirements:
- Historical audited accounts
- Risk disclosures
- Director and executive information
- Governance policies
- Key contracts and liabilities
Advisors typically include lawyers, accountants, and lead managers.
Strong financial reporting is one of the most critical parts of IPO preparation.
Do You Need an Underwriter?
Underwriting is optional but widely used.
Role:
- Raise investor capital
- Assist with pricing
- Support marketing
- Provide funding certainty
Cost:
Typically 3.5% to 7% of funds raised
Smaller IPOs may proceed without underwriting to reduce costs, but this increases execution risk.
How Much Does It Cost to List on the ASX?
Estimated IPO Costs
| Expense | Estimated Cost |
|---|---|
| Legal and compliance | AUD $200,000 – $800,000 |
| Accounting and audits | AUD $100,000 – $500,000 |
| Underwriting fees | 4% – 6% of capital raised |
| ASX and ASIC fees | AUD $50,000 – $150,000 |
| Marketing and investor relations | AUD $50,000 – $300,000 |
Total cost:
Typically ranges from AUD $500,000 to several million dollars
Ongoing compliance costs after listing can exceed AUD $300,000 annually for smaller companies.
ASX vs NSX vs Cboe Australia
| Exchange | Best For | Advantages | Limitations |
|---|---|---|---|
| ASX | Growth and established companies | Strong liquidity and investor trust | Higher compliance costs |
| NSX | Smaller businesses | Lower listing costs | Limited liquidity |
| Cboe Australia | Investment products | Alternative trading venue | Limited IPO use |
The ASX remains the preferred exchange due to its scale and access to capital.
What Happens After the IPO?
Listing creates ongoing obligations under ASX rules.
Key Requirements
- Continuous disclosure of material information
- Annual and half-year financial reporting
- Shareholder communication
- Governance compliance
Operational Impact
- Increased regulatory scrutiny
- Greater investor oversight
- Exposure to share price volatility
An IPO changes how a business operates, requiring consistent transparency and reporting discipline.
Additional Insights for Founders
Market Timing
IPO activity depends on broader economic conditions. Interest rates, inflation, and investor sentiment influence valuations and demand.
Sector Trends
The ASX sees strong listing activity in:
- Mining and resources
- Technology
- Healthcare
Ownership Dilution
Founders typically dilute 20% to 40% equity during an IPO, depending on valuation and capital raised.
To know more such tips related start-ups finance, keep reading at Inspirepreneur Magazine.