Select two companies that have issued prospectuses to list on the ASX this year
Length: 1000 words maximum
This assignment is compulsory
Select two companies that have issued prospectuses to list on the ASX this year (i.e. the prospectus is dated 1 January 2015 or later). They should also be raising capital by offering shares for purchase.
Your firms can be currently seeking admission to the exchange or have listed this year.
Your firms should not be:
• investment funds (i.e. they should have some line of business other than investing other people’s money)
• ‘spin-offs’ (i.e. they should not be a line of operation of an existing listed firm that is being offered as a separate entity)
• Foreign companies listing on the ASX (these offer CDIs, not shares)
• a business that has not yet operated (i.e. no start-ups)
If the listing document says ‘information memorandum’ (rather than ‘prospectus’), select a different firm.
Provide a brief description of the activities of each of the businesses (100 words).
Listing firms must be public companies to have their shares traded on the ASX. What was the legal ownership structure of each of your firms before the prospectus was issued? Provide some explanations as to why the original owners of the business consider that a public company is now a more appropriate structure (200 words).
Are the two issues underwritten? Using the specific characteristics of each IPO firm, explain why the issuers were likely to make this choice (150 words).
Identify any signalling mechanisms the issuers have used in the prospectus. Explain why issuers might use these signals. What other signals could the issuers have provided? (250 words)
Do your issuers meet the definition of small business prior to listing? Explicitly state your chosen definition of small business (300 words).
NOTE: Any material that should be referenced (and is not) will not be allocated a mark.
Mark scored Mark available
Business activities 1
Legal ownership structure pre-listing 3
Small business pre-listing? 5
Presentation (grammar, proofing and headings) 2
Total mark 20