The company is leveraged to Australia’s capital markets, particularly the number of listed companies, the volume of trades in all types of traded financial contracts, initial public offerings (IPOs) and secondary market capital raisings.
Recently, ASX agreed to a takeover approach from Singapore Exchange, valuing the company at US$8.2 billion, or $48 per share.
The part cash/part scrip offer, which was at an almost 40% premium to Friday’s last traded price of $34.96, will now need to be approved by Australian regulators.
ASX will now be one of the stocks to watch in coming weeks/months, as there is no guarantee the takeover will receive regulatory approval.
The combined entity will be listed on both Singapore and Australian exchanges, and will serve as a formidable competitor to the region’s big exchanges such as the Nikkei and Hang Seng.
ASX was one of the hot stocks on the day of the announcement, rocketing 20% after coming out of a trading halt.