Equity - Ordinary Shares

Financing through the sale of shares to retail and institutional investors through the Australian Securities Exchange (ASX). 

Firms ‘floating’ on the exchange with an IPO (Initial Public Offering) are required to:

• produce a prospectus, 

• comply with listing requirements of the ASX, 

• have their accounts audited by external agency and produce a publicly available Annual Report. 

• pay dividends to shareholders.

External equity is expensive (Investment Bank fees) and time-consuming. The timing (poor stock market conditions are bad for IPOs) and the price per share needs to be correct to ensure maximum equity acquired for use for growth. 

Types include: new issue, rights issue, placements, share purchase plans.

Articles and Media:

The Listing Process - ASX

Sample Prospectus - Guzman y Gomez (GYG)