Tapping into small scale capital
Written on the 7 April 2009
A TURBULENT ASX has Australia’s largest unlisted securities platform launching a raft of new initiatives as part of its push to promote the $117 billion sector.
The Australian Small Scale Offerings Board (ASSOB) represents 55 companies totalling around half a billion dollars.
ASSOB CEO Paul Niederer, says the new initiatives will not only provide unlisted companies with better tools from which to raise capital, but will also provide investors with better access to information regarding investment opportunities.
“The unlisted companies’ sector makes up 43 per cent of Australia’s GDP so is a substantial contributor to our economy in terms of both finance and employment,” says Niederer.
“For a long time now the sector has not been properly understood and our aim is to ensure both company founders and investors have access to tools that will help them grow, ultimately boosting the sector.
“Given the current financial climate, with cash and listed companies proving volatile, the unlisted sector is offering excellent opportunities over and above these traditional investment channels.”
Last year, 82 companies listed on ASSOB’s primary offering board with more than 85 per cent of new listings successful in raising capital.
“Many of the companies listed on ASSOB have a need for experienced directors, senior executives and specialists who can guide them through their development stage, so this will greatly enhance and facilitate these opportunities,” says Niederer.
ASSOB has also established a company governance service designed to assist new company directors with compliance duties.
“When a company raises capital from individuals or institutional investors, good corporate governance is essential and many directors simply don’t understand their responsibilities in this regard,” says Niederer.
ASSOB has also identified a gap in the investment spectrum in the lead up to liquidity or exits for unlisted companies. The board specialises in assisting unlisted companies attract capital, typically in the range of $200,000 to $5 million.