Stock Market 708 Private Placements for Beginners

When it comes to investing on the Australian Securities Exchange (ASX), most investors are familiar with buying shares through brokers or participating in public IPOs. But one lesser-known and often overlooked method is investing via Private Placements—exclusive offers typically reserved for wholesale investors.

You may have seen these mentioned in ASX announcements but never taken the time to explore how they actually work—or how you might become eligible. Let’s change that.

What is a Private Placement?

A Private Placement is a capital-raising method where new shares are issued directly to a small group of investors, bypassing public offers. Unlike traditional IPOs or on-market purchases, these offers are made to Sophisticated, Institutional, or Professional Investors, as defined under Section 708 of the Corporations Act 2001 (Cth).

Companies use Private Placements to raise funds for a range of purposes—working capital, acquisitions, debt reduction, or expansion. These offers sometimes include discounted share prices to attract quick investment, though discounts are not guaranteed.

Excluded Offers and Section 708

Private Placements fall under the category of excluded offers, meaning companies are not required to issue a disclosure document like a Prospectus. Section 708 of the Corporations Act outlines the categories of investors eligible for these offers.

While most retail investors don’t qualify as Sophisticated or Professional Investors, there is a lesser-known pathway: qualifying as an Experienced Investor under s708(10) through a licensed financial services provider.

Sophisticated vs Experienced Investors

To be certified as a Sophisticated Investor, you’ll need a qualified accountant to confirm either:

• Net tangible assets over $2.5 million, or

• Gross income of at least $250,000 for each of the last two financial years.

Alternatively, investing at least $500,000 in a single offer can also meet the threshold.

If you don’t meet those criteria, there’s still hope. Under s708(10), a licensed financial services firm can assess your investment experience. If you’ve demonstrated past involvement in securities investing and can understand the value, risks, and merits of an offer, you may qualify as an Experienced Investor.

The process typically involves answering a short questionnaire and receiving a written statement from the firm confirming your eligibility. You’ll also be asked to sign an acknowledgement confirming no disclosure document has been provided.

A Caution on Access

While many offers are available to Experienced Investors, some companies or brokers may choose to limit participation to only Sophisticated or Institutional Investors out of an abundance of caution. The financial services industry is heavily regulated, and firms sometimes take a conservative approach.

Additionally, many full-service advisers may not provide personalised investment advice on Private Placements, as they assume you’re capable of making your own investment decisions.

Titan Securities Can Help

Titan Securities is a 100% Australian owned and operated financial services firm. We've been operating under our own AFSL since 2007, with over 27 years of industry experience in capital raisings, IPOs, and retail investment services.

We're not just a notification platform. We work one-on-one with eligible investors to help them access potential Private Placement opportunities and guide them through the qualification process—quickly and professionally.

👉 To register your interest in upcoming Private Placements and ASX share issues, visit:

📍 www.titansecurities.net/shareissues

Titan Securities Pty Ltd (AFSL 307040).

Disclaimer: The information contained within this webpage does not constitute an offer or invitation to subscribe for shares. However, any implied offer herein is an excluded offer pursuant to sections 708 (8), (10) & (11) of the Corporations Act 2001 (Cth). We will confirm your eligibility as a Wholesale Investor before sending you any s708 offers. Any offer that does not require a disclosure document, such as a Prospectus or Product Disclosure Statement, is generally not intended for retail investors.

The content within this email is provided for general information purposes only. It does not take into account your personal objectives, financial situation, or needs. Before acting on any information, consider its appropriateness and seek personal advice from a licensed financial adviser. Investing involves risk. Past performance is not a reliable indicator of future performance.