Retail investors to miss out on IPOs

The Australian Securities Exchange (ASX) should reserve at least 25 per cent of every initial public offering (IPO) to retail investors, OnMarket BookBuilds believes.

Responding to the ASX's proposal to reduce the minimum number of investors a company must have to list to (100 for large companies and 200 for small companies), the firm said the rules could result in retail investors and self-managed superannuation funds (SMSFs) being locked out from participating in IPOs.

The capital raising platform provider firm's chief executive, Ben Bucknell, said the ASX should reserve 25 to 40 per cent of every IPO, as more than 572,000 SMSFs account for $600 million in assets.

Related News:

"Unless a percentage is reserved for ordinary Australians, they will continue to miss out on the opportunity to bid in most IPOs," Bucknell said.

"But listing rules that give SMSFs certainty that they will be treated fairly in allocations will make a new $600 billion pool of capital available to companies raising capital.

"This could lower the cost of raising capital and have national benefits for the Australian economy, jobs and growth."

Related Content

Westpac hit by $357m of remediation associated with ARs

Westpac has announced its first half cash earnings will be reduced by $357 million to account for provisions for remediation associated with authorise...Read more

Don’t incentivise planners via commission rebates says ISA

Government proposals to rebate grandfathered commissions to clients via product providers would represent a significant abrogation of one of the key r...Read more

How does MySuper stack up against other options?

With new research showing that a significant majority of super fund members don’t swap out of MySuper options, Money Management looked at data from ...Read more



I signed this petition. I can't believe that the ASX is trying to shut out retail investors. Well done to OnMarket for going into bat for retail and SMSF investors.

Add new comment