Recently, we have received a lot of inquiries about listing in Australia, and today we have compiled a detailed Q&A to give back to you.
The Q&A covers why Chinese companies should list in Australia, whether they choose IPO or reverse merger, i.e., backdoor listing, the conditions, time period and fee standards for listing.
Q1: We are a Chinese import and export ** company, mainly engaged in Australian pet products, imported to China, sold to Chinese consumers, can such a company be listed in Australia?A: Absolutely. Because since 2016, the Australian Securities and Futures Commission has a new rule for Chinese companies to list in Australia, that is, business relevance, that is, the main business of the company to be listed must have a certain relevance to Australia. Your business is to import Australian pet products to China for sale, which has a very clear correlation with Australia, and can be listed in Australia.
Q2: What are the benefits of a ** company like ours going public in Australia?A: The benefits are numerous. From the business level, after being listed in Australia, the identity of a listed company can provide endorsement for your main business, improve the efficiency of expanding strategic cooperation channels, improve consumer trust in the brand, and also facilitate mergers and acquisitions, integrate the top chain in Australia, and reduce the cost of the first chain.
At the same time, Australia is a Commonwealth country, its listing rules, trading system and regulatory supervision are very similar to the mainstream exchanges in Europe and the United States, after the company is listed in Australia, it can go to the United States, the United Kingdom or Hong Kong for secondary listing, and further broaden the financing channel.
In addition to these, after the company is listed, the brand potential energy is stronger, the attraction of high-end talents is also stronger, and at the same time, it can also obtain local incentives, subsidies and policy support.
Q3: How should we operate to list in Australia?A: There are two main ways for Chinese companies to list in Australia: IPO and backdoor listing.
1. Initial Public Offering (IPO).
This is the most common way for a business to go public by raising funds from the public. Before proceeding with the IPO, the company needs to prepare relevant documents, such as a prospectus, and then work with the underwriters to carry out the ** offering.
2. Reverse merger and listing, that is, backdoor listing.
A way to go public through the acquisition of a company that is already listed in Australia. A company may choose to merge with a publicly traded company with existing operations and assets, and restructure its business and management after the completion of the merger. A backdoor listing does not require the registration of the original shares and the procedures for a public offering, so it usually takes less time than an IPO.
Q4: What are the requirements for listing in Australia?There are two main exchanges in Australia, namely: the Australian Exchange (ASX) and the Australian National Exchange (NSX).
ASX Admission Criteria:
1.There are at least 300 shareholders, each holding at least $2,000.
2.Total profit of $1 million for the last three years or $500,000 for the last 12 months or $4 million in net tangible assets or $15 million in gross market capitalization.
3.Market low**: 20 cents.
NSX Admission Criteria:
1.There are at least 50 shareholders, each with an investment of more than $2,000 and 25% of the shares held by unrelated parties.
2.Two years of proper business records or underwriting by the underwriters** with a minimum market capitalization of $500,000.
3.There is no minimum listing price.
Question 5: How much is the operating cost of listing in Australia?Answer: Enterprises need to be listed on the ASX in Australia about (800-12 million yuan), and the overall cost is much lower than that of mainstream capital markets such as China's IPO (30 million to 50 million yuan), the US NASDAQ (8 million to 10 million yuan), and the Hong Kong Stock Exchange (15 million to 30 million yuan). This is very valuable for small and medium-sized businesses.
Question 6: What kind of listing counseling institutions do Chinese companies need to find when they go public in Australia?Answer: When an enterprise goes public in Australia, it should strictly select the listing counseling team, including: brokers, sponsors, financial advisors, Australian lawyers, Australian auditors, Chinese lawyers, Chinese accountants, registered companies, appraisal companies, public and affiliated companies and other intermediary teams.
All teams should have the appropriate legal qualifications, and all work should comply with the requirements of Chinese and Australian laws and regulations, as well as the regulatory requirements of the Australian Securities and Exchange Commission. For example, the Hui Ling of Australia and Shanghai Capital is twotwo100, which is the earliest listing counseling institution in China to enter the Australian ** exchange, and has a professional team in Australia, Singapore, Hong Kong, Shanghai, Guangzhou and other places, and has successfully counseled more than 10 companies to successfully list in Australia.