NZ Small and Mid-Cap stocks should list on the NZX

Media release 12 April 2017

NZ Small and Mid-Cap stocks should list on the NZX before considering the ASX

Small and mid-sized New Zealand companies should be listing on the New Zealand stock exchange rather than moving straight to a stock exchange listing in Australia, according to Woodward Partners Managing Director Neville Todd.

Opening the Woodward Partners NZ Mid-Cap Spotlight investment seminar in Auckland today Mr Todd said six NZ companies have undertaken an ASX-only listing over the past two years and all have underperformed the NZX Small Cap Gross Index in NZD terms.

“The decision to take an ASX-only listing has been at the considerable expense of their shareholders and the performance of each of these companies has been very poor in comparison to the performance of the NZX Small Cap Gross Index,” Mr Todd said.

The range of relative underperformance since each company listed is between -24% to -123% compared to the NZX Small Cap Gross Index.

“Directors and management considering listing on a public exchange to help them raise capital should firstly be considering their home exchange on the NZX.

This is where their networks are and they have an advantage of being listed where suppliers, customers, staff and others in the investment community are based and already know them.”

Mr Todd said the rapid growth in KiwiSaver funds is also providing a growing source of capital for local small and mid-cap companies to access locally.

Woodward Partners is committed to working with small and mid-cap companies to provide them with research coverage and investor access services to ensure that these companies have better access to risk capital in NZ and internationally.

WWP_Investor_Day__Conference_Book_120417.pdf

© Scoop Media