Ann: GENERAL: NZX: NXT - the next step for NZ's capital markets

• Release Date: 28/08/14 10:34
• Summary: GENERAL: NZX: NXT - the next step for NZ's capital markets
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					NZX
28/08/2014 10:34
GENERAL

REL: 1034 HRS NZX Limited

GENERAL: NZX: NXT - the next step for NZ's capital markets

NZX today announced that its new market for smaller, high growth companies
will be called NXT ("Next"). NZX held an event in Auckland this morning,
attended by Minister Steven Joyce and a range of companies and industry
representatives, to provide an update on progress as NZX works towards the
launch of the NXT market:

- The NXT market website is now live and accessible at: NXT.co.nz. Interested
investors can also sign up for updates

- NZX is working with the Financial Markets Authority regarding its
application for registration of the market and approval of the listing rules.
The FMA application followed Ministerial approval received in July that
allows NZX to establish the NXT market using an alternative disclosure regime
rather than the traditional continuous disclosure requirements of the NZX
Main Board

- The timing of the launch of NXT depends on FMA approval and companies being
ready to list. NZX currently expects this to be Q4 2014

- The set up and testing of the trading and clearing infrastructure has been
completed. Prior to the market's launch, NZX will provide an update on the
final test cycle

NZX CEO Tim Bennett commented: "The NXT market is innovative - 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."

The market will have a new disclosure regime that will be simpler for
companies and investors. In addition to regular financial reporting, a key
feature of disclosure on the NXT market will be quarterly reporting of the
underlying drivers of business performance or Key Operating Milestones
("KOMs").

Underpinning the market's design is the new regulatory regime in place in New
Zealand, the Financial Markets Conduct Act, which came into effect this year,
and provides the flexibility to develop new markets for different types of
companies and groups of investors.

Mr Bennett commented: "Many businesses operating in New Zealand need
additional capital for growth. Currently it's time consuming for them to find
capital, and can be a drain on their limited resources. Inability to raise
low cost capital hampers their growth and ultimately New Zealand's economic
prosperity. That's the problem the NXT market will address."

"We called the market NXT because it reflects "what's next" for both
potential listed companies and investors in those companies. We're talking to
lots of New Zealand businesses that are growing rapidly - they need new
capital, they're looking to expand - they're asking, what's next?"

"We've also talked to lots of founder shareholders who have been invested in
business for many years and they're also asking, what's next for me and my
business? And we've got a great group of active investors in New Zealand who
are looking for new investment opportunities - and they're asking, what's
next for their portfolio?"

Other points
NZX will appoint a market maker and research provider for the NXT market
which will aid liquidity, as well as providing independent analysis to
investors on NXT companies.

NZX intends to continue to support companies that are listed on the NZAX
market for the foreseeable future. Once the NXT market has launched, NZX will
no longer accept listings on the NZAX and will instead encourage companies to
either list on NXT or the Main Board, as appropriate.

Key features of NXT:

- A market aimed at small to mid-sized businesses with an expected market
capitalisation of $10-100 million

- Reduced costs and complexity, both during the listing process and on an
ongoing basis

- More support for companies listed on the market

- A streamlined regulatory environment, with a simpler set of rules and
procedures

- The presence of market making and research to aid efficiency and liquidity

- Better information on companies for investors through quarterly updates,
research coverage and reporting by companies of key operating milestones

For further information please contact:
Kate McLaughlin
Corporate Communications
M: 027 533 4529
E: [email protected]
End CA:00254519 For:NZX    Type:GENERAL    Time:2014-08-28 10:34:30