- ASX considers allowing dual-class shares to bring it in line with global rivals
- Dual-class shares were considered in 2007 but plan was shelved
- ASX and ASIC under pressure to streamline listing process
SYDNEY, March 12 (Reuters) - The Australian Securities Exchange (ASX) is considering allowing dual-class shares to be listed for the first time as the exchange operator and the corporate regulator try to revive the nation's lacklustre listings market, an ASX executive said.
ASX's group executive of listings, Blair Beaton, said dual-class shares are not allowed in Australia so far, placing the domestic market at a disadvantage compared to its major global rivals.
Dual-class structures typically have two or more types of shares with different voting rights, which some investors have argued can diminish shareholder rights. But several regulators have pushed to widen the usage of dual-class shares in a bid to encourage more listings.
Such kinds of shares are common in the U.S., and London's Financial Conduct Authority (FCA) has recently implemented changes to allow more dual-class listings.
"The ASX is the only major exchange that does not allow dual-class shares and there's a range of views on this topic," Beaton told Reuters in an interview on Wednesday.
"Some investors won't necessarily like it. Others will tell you that if an Australian company goes overseas because you can't do it here, if that company is a good company they will buy those shares on another exchange.
"We want the ASX to be the most attractive listing venue in the region and one that is globally competitive so it's a useful time to start a discussion on this concept."
News Corp last year successfully defended a bid by activist investor Starboard Value, which attempted to have the media company's dual-class share structure wound back.
The ASX contemplated introducing dual-class shares in 2007, but faced pushback from investors and shelved the plan.
Beaton said Australia's equity market had matured since then and the idea should be re-examined in consultation with market participants.
The ASX and the Australian Securities and Investment Commission (ASIC) have been under pressure to implement regulatory change to help revive sagging listing volumes in Australia.
Initial public offerings raised $2 billion in 2024, LSEG data showed, of which $1.3 billion was raised by a single company - data centre trust Digico.
So far in 2025 only listed investment trusts have debuted on the ASX after raising A$300 million each and the 2024 total, excluding Digico's contribution, was a near-decade low.
ASIC urged the ASX last month to consider streamlining its IPO approvals process to help make it easier for companies to list.
Reporting by Scott Murdoch; Editing by Christopher Cushing and Muralikumar Anantharaman
Source: Reuters