ASIC Allows Pre-IPO Advertising to Retail Investors

A new ASIC instrument lets companies advertise planned share offers to retail investors before lodging a prospectus.

Updated on Nov. 15, 2026 in Advertising

ASIC Allows Pre-IPO Advertising to Retail Investors

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Would you consider buying shares in a company during its upcoming IPO?

The Australian Securities and Investments Commission issued Instrument 2026/807, permitting companies planning an initial public offering to advertise offers to retail investors before lodging a prospectus. The instrument replaces a 2020 measure that allowed limited pre-IPO disclosure to existing shareholders and employees.

Why it matters

ASIC says the change aims to encourage greater IPO activity and give everyday Australians earlier access to investment opportunities. It also aims to improve the information available to potential investors and allow companies to correct misinformation.

Six of seven submissions on Consultation Paper 390 supported the change, which applies a seven-day exposure period after prospectus lodgement that ASIC can extend to 14 days. The instrument has no size test and no test on company type, and it is set to be repealed on 1 October 2031.

The players

Australian Securities and Investments Commission (ASIC)

ASIC is Australia's independent corporate, markets and financial services regulator, responsible for enforcing the Corporations Act and issuing instruments that modify its provisions.

Australian Securities Exchange (ASX)

The ASX is Australia's principal securities exchange, where companies list through initial public offerings and where its monthly activity reports track listing trends.

The details

Under the instrument, pre-prospectus advertisements must identify the issuing company and any selling shareholders, and must state that a prospectus will be available and where to find it. Companies must also have adequate arrangements in place to keep those advertisements up to date, and the instrument applies only to the period before a prospectus is lodged.

4 August 2026: ASIC released Consultation Paper 390 on the proposed change.
November 2026: Instrument 2026/807 came into force.
1 October 2031: Instrument 2026/807 is repealed.

Market Landscape

The instrument modifies section 734 of the Corporations Act, which generally bars advertising securities offers that require a prospectus, creating a carve-out for the pre-lodgement stage. It replaces the 2020 instrument that permitted only limited disclosure to existing holders and employees, widening who can be reached before an IPO.

Everyday investors may begin to see IPO offers advertised before a prospectus is lodged, so they should look for the prospectus itself before applying. Advertisements must state where the prospectus can be found, and applications still require the prospectus form.

The takeaway

Investors considering an IPO should read the full prospectus before applying, even if the offer was first seen in an advertisement. The pre-prospectus material is intended to be a starting point, not a substitute for the prospectus.