NZ just got a whole lot better looking – the stock market, that is
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It’s just become a lot more attractive to list in New Zealand and add an ASX IPO later, after rule changes from the bourse across the Tasman Sea.
NZ King Salmon (ASX:NZK) updated the ASX today saying it will comply with the new rules, meaning it will no longer be issuing a half-year report.
Chief Grant Rosewarne says it “definitely” makes the NZX a more attractive place to list, not least because it means they no longer have to issue a half-year report in Australia now.
Kiwi companies that list in Australia have to comply with New Zealand market rules, and only a few of the stricter Aussie ones, and the cost of adding an ASX listing is “incremental”.
“If it satisfies the NZX then it’s fine for the ASX,” he told Stockhead.
If it had listed independently on the ASX, rather than via the sweetheart foreign exempt listings route, it would have had to comply with the Australian rules.
A series of NZX rule changes that came in at the start of the year is making that bourse look very attractive to newcomers.
These changes include no longer having to issue a half-year report and allowing virtual AGMs.
The former is required in Australia by the ASX and rules whether the latter is permissible are still unclear, although hybrid virtual-physical AGMs are.
Other NZX rule changes, such as reducing the amount companies can raise from equity issues without issuing a prospectus from 20 per cent to 15 per cent and certain continuous disclosure rules, were to bring the NZX into line with foreign markets.
A $10m market cap minimum for new listings is one of the tougher requirements.