Path to going public on markets sped up for companies

The watchdog will now work with companies two weeks before documents laying out details about an initial public offering are made available to the public.

ASIC says it will lessen the risk of potential investors being scared off by volatile markets.

The changes are being rolled out as part of a two-year trial to reverse a decline in companies going public on the Australian market.

The number of companies going public hit a 20-year low in 2024, with just 29 initial public offerings on the ASX.

That compares with the 240 new listings on the ASX in 2021.

Commission chair Joe Longo said the changes would provide greater confidence in the stock market.

"Creating a more streamlined IPO process underscores our commitment to ensuring our public markets remain attractive to companies and investors," he said.

"Greater deal certainty for companies should help deliver more IPOs, which means more investment opportunities so companies can expand, increase jobs and ultimately economic growth."

The changes are being announced ahead of a symposium being held by the commission on Tuesday in Sydney about the future of Australia's markets.

A discussion paper put out by the commission in February said the number of publicly listed companies had been declining in many developed markets over decades.

"The Australian market is concentrated, with most companies in the financials and mining sectors, and less represented in sectors that will drive growth in our increasingly digital future," the paper said.

"Many companies are choosing to stay private where new funding and sell downs are now more accessible, while others are choosing to list in the United States."

Mr Longo said further reforms were being considered to boost the number of new listings.

"While we do not see regulatory settings as the silver bullet, we have received lots of ideas and are considering further regulatory adjustments to support a strong and well-functioning market," he said.