WELLINGTON Aug 28 New Zealand's stock exchange
operator, NZX Ltd, is to set up a new market with
easier disclosure and reporting rules aimed at small,
NZX said on Thursday it expected the NXT market to start
operating in the fourth quarter, subject to regulatory approval,
and it would be aimed at small-to-mid sized businesses looking
"Currently it's time consuming for them to find capital, and
can be a drain on their limited resources," said NZX chief
executive Tim Bennett.
He said the market would cover companies valued at between
NZ$10 million and $NZ100 million ($8.39 million to $83.9
million), and they would face lower listing costs and
streamlined rules and procedures.
"We've taken the best of what other markets around the world
are offering and combined that with the unique market
environment and regulatory structure we have in New Zealand to
design a market that is fundamentally different," Bennett said.
Companies seeking to list will only have to provide
simplified financial documents to prospective investors compared
with the current requirement for a prospectus with detailed
Once listed they would file quarterly reports on activities
and performance against operating milestones, rather than the
continuous disclosure rules of the main NZX board.
NZX would assist liquidity with a market maker, as well as
hire an independent research provider.
The NZX has been boosted this year by a flurry of share
floats and listings, the biggest being the New Zealand
government's NZ$733 million sale of 49 percent of Genesis Energy
In June and July, seven small-cap mainly technical, software
companies raised modest amounts through sales of new and
The NXT market will eventually replace the NZAX market, set
up in the late-1990s as an incubator market for small stocks,
which has suffered from poor liquidity and little investor
(1 US dollar = 1.1919 New Zealand dollar)
(Reporting by Gyles Beckford; Editing by Stephen Coates)