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The ASX is shrinking – a plan to get more companies to float does not go far enough (theconversation.com)

submitted 2 weeks ago by [email protected] to c/[email protected]

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[...] the number of businesses in Australia listed on the stock exchange is declining. This has been described as the worst public offering drought “since the global financial crisis”.

In response, on Monday, the Australian Securities and Investment Commission (ASIC) announced measures to encourage more listings by streamlining the initial public offering process.

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[–] [email protected] 2 points 2 weeks ago (1 children)

I would have liked to see this article delve into the why, but it assumes it's because of ASIC "red tape" and the solution is to relax requirements on companies. There are a multitude of potential reasons why fewer companies may be listing now, from interest rates and bank lending facilities, availability of public investor capital, changes to superannuation, competition from foreign capital markets and so on, but no mention of any of these.

ASIC (and ASX) requirements are partly there to protect public investors from getting fleeced, and all of the suggested 'improvements' to ASIC's changes are in favour of business owners with no mention of investor protections.

[–] [email protected] 1 points 2 weeks ago

and all of the suggested ‘improvements’ to ASIC’s changes are in favour of business owners with no mention of investor protections.

There is also the angle of the everyday consumer. Companies seem to get worse after going public. Encouraging companies to go public could have consequences on consumers (and therefore the economy).