Australian Small Scale Offerings Board

Australian Small Scale Offerings Board

The Australian Small Scale Offerings Board (ASSOB) is a facility for small businesses in Australia (often referred to as the SME sector) to raise equity finance. It differs from the Australian Stock Exchange (ASX) and the National Stock Exchange in a few key ways:

# Most capital raisings on ASSOB occur under the provisions of section 708 of the Corporations Act (explained below)
# While ASSOB has a secondary market, it is not an exchange with active market-makers constantly buying and selling shares
# Listing costs and compliance costs are substantially reduced

Capital raising in Australia is strictly regulated under the federal Corporations Act. The intention is to protect investors, and for this reason, most approaches to investors require expensive and comprehensive prospectuses registered with the Australian Securities and Investments Commission (ASIC), the government regulator. Company directors assume significant legal responsibilities when make investment offers to the public.

Section 708 of the Corporations Act allows small fund raising without the need to register a prospectus. Funds raised are limited to $2m and the offer can not be marketed. Further, only a small number of investors can participate.

ASSOB operates in this area of the law, but has permission to raise up to $5m, and to allow registered brokers to assume some legal responsibilities associated with the offer, and the Section 708 restrictions on advertising a small-scale offer are relaxed. ASIC provides this via Class Order 02/273 applicable to section 708 [cite web | url=http://www.findlaw.com.au/article/14472.htm | title=Class Order for Small Scale Offering Board]

In the spectrum of financing opportunities available to small business, ASSOB competes mostly with venture capital funds, and the traditional consultant or accountant based investor search. ASSOB offers a marketing channel to inform potential investors of the offer, and a secondary market.

Because of the risky nature of equity finance, and because most ASSOB listings sell only a minority share, investors are looking for opportunities with high upside. ASSOB is therefore usually considered most appropriate for businesses with convincing high-growth potential,

ASSOB is owned by Start Securities Group Ltd, a company listed on the National Stock Exchange of Australia, with listing symbol SEC.

References and footnotes

External links

* [http://smallbusiness.theage.com.au/managing/finance/sowing-the-seed-capital-903905482.html Sowing the seed, The Age]
* [http://www.assob.com.au/ ASSOB official website]
* [http://www.corporateoutcomes.com.au/ Victorian-based ASSOB member]
* [http://www.businessgrowthstrategies.com.au NSW-based ASSOB member]
* [http://www.asic.gov.au/asic/asic.nsf ASIC]
* [http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/co02-273.pdf/$file/co02-273.pdf ASIC Class Order 02/273]


Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • performing arts — arts or skills that require public performance, as acting, singing, or dancing. [1945 50] * * * ▪ 2009 Introduction Music Classical.       The last vestiges of the Cold War seemed to thaw for a moment on Feb. 26, 2008, when the unfamiliar strains …   Universalium

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Business and Industry Review — ▪ 1999 Introduction Overview        Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… …   Universalium

  • Art, Antiques, and Collections — ▪ 2003 Introduction       In 2002 major exhibitions such as Documenta 11 reflected the diverse nature of contemporary art: artists from a variety of cultures received widespread recognition for work ranging from installation to video to painting …   Universalium

  • broadcasting — /brawd kas ting, kah sting/, n. 1. the act of transmitting speech, music, visual images, etc., as by radio or television. 2. radio or television as a business or profession: She s training for a career in broadcasting. [1920 25; BROADCAST + ING1] …   Universalium

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • arts, East Asian — Introduction       music and visual and performing arts of China, Korea, and Japan. The literatures of these countries are covered in the articles Chinese literature, Korean literature, and Japanese literature.       Some studies of East Asia… …   Universalium

  • India — /in dee euh/, n. 1. Hindi, Bharat. a republic in S Asia: a union comprising 25 states and 7 union territories; formerly a British colony; gained independence Aug. 15, 1947; became a republic within the Commonwealth of Nations Jan. 26, 1950.… …   Universalium

  • Anthropology and Archaeology — ▪ 2009 Introduction Anthropology       Among the key developments in 2008 in the field of physical anthropology was the discovery by a large interdisciplinary team of Spanish and American scientists in northern Spain of a partial mandible (lower… …   Universalium

  • religion — religionless, adj. /ri lij euhn/, n. 1. a set of beliefs concerning the cause, nature, and purpose of the universe, esp. when considered as the creation of a superhuman agency or agencies, usually involving devotional and ritual observances, and… …   Universalium

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”