Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

FMA approves NZX's new growth stocks NXT market

FMA approves NZX's new growth stocks NXT market

By Suze Metherell

Sept. 29 (BusinessDesk) - The Financial Markets Authority has approved the NZX's new NXT market for high growth or "momentum" stocks, with the stock market operator expecting it to launch later this year.

The regulator's approval was the last sign off the Wellington-based stock market operator needed for its new market it said in a statement. NXT is intended to lure more small-to-medium sized firms to the bourse with less costly and simpler disclosure rules, filling a funding gap for mid-cap growth stocks that was first identified in the 2009 Capital Markets Development Taskforce led by investment banker Rob Cameron.

The alternative disclosure regime will see companies use key operating metrics to outline their business performance and will have a higher threshold on what information triggers market disclosure than exists in the current continuous disclosure regime. NXT will ultimately replace the decade-old secondary board, NZAX, for which no new additions will be accepted once the NXT platform is up and running.

The market has a separate website and branding from the NZX, as well as a risk warning where investors are informed of the differences between the new market and other NZX markets. NZX said the NXT launch will depend on companies being ready to list, but expected it to be before the end of the year. The NXT market rules will be live on its website tomorrow and investors will be soon able to register for a reference number showing they understand the risks, it said.

The NXT market will provide investors with company research and guaranteed "market-makers" to further promote confidence and liquidity on the new bourse. Listed companies will have to appoint independent directors and a dedicated 'sponsor' to provide an advisory role for the first three years of listing. NZX will also have the right to refuse a listing and companies must show the operating metrics chosen do accurately measure the company's performance. New market companies will also be required to graduate to the NZX's main board once they reach a certain size.

In July, Commerce Minister Craig Foss granted a ministerial exemption allowing a less-onerous disclosure regime for NXT. The ministerial exemption will apply under the Securities Act until December, when the Financial Markets Conduct Act comes into full effect. Cabinet has agreed to enact regulations to allow the exemption under the new law.

Shares of NZX rose 0.8 percent to $1.26, and have advanced 0.8 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: