Capital Raising by Companies During the COVID-19 Crisis: An Analysis of Recent ASX Reforms

Abstract

The effects of the COVID-19 crisis have driven many listed Australian companies to raise emergency capital. These share issues have been facilitated by a relaxation of the rules applying to capital raising by the Australian Securities Exchange (ASX), a move supported by the Australian Securities and Investments Commission (ASIC). The reforms to the rules draw on the experience of the financial crisis in 2008–2009. They are designed to assist companies adversely affected by the COVID-19 crisis to raise capital to survive the crisis.