Investing.com– Shares of Australia’s ASX Ltd () slumped over 10% on Tuesday after the stock exchange operator flagged a sharp rise in spending and capital expenditure targets as it accelerates technology upgrades and regulatory remediation efforts.
ASX shares dropped 10.6% to A$52.27 by 01:25 GMT, set for their worst session in more than three months.
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The company guided for fiscal 2027 total expense growth of 18% to 21% and raised FY27 capex guidance to A$180 million-A$200 million from a prior A$160 million-A$180 million.
The exchange operator said higher spending would be driven primarily by technology modernisation, including upgrades tied to its CHESS clearing and settlement platform, as well as the expanded “Accelerate Program” following an inquiry by the Australian Securities and Investments Commission (ASIC).
ASX also introduced FY28 capex guidance of A$170 million-A$190 million and lowered its medium-term return on equity target range to 12%-14% from 12.5%-14%.
The company said it expected dividend payouts to remain at the lower end of its 75%-85% payout ratio range for at least the next two dividends as it builds additional capital buffers.
ASX maintained its FY26 guidance and said unaudited operating revenue for the year to April 30 rose 12.5% to A$1.03 billion, supported by strong trading and derivatives volumes.