New Zealand Exchange Limited ( NZX) advises that it has received advice from the Minister of Commerce, Lianne Dalziel that she has not disallowed any of the c hanges to the NZAX Market Listing Rules.
These changes followed NZX's review of the NZAX Market in August 2006. Feedback from the review favoured aligning the NZAX Listing Rules more closely with the structure and format of the NZSX Listing Rules, while retaining distinctive and relevant Listing Rules for the NZAX Market.
NZX established the NZAX Market in 2003 with the objective of making it easier and cheaper for small-to medium-sized companies to raise capital through the public markets.
Changes to tick size and trading hours for the NZAX Market were implemented on the 2 October last year, but a rules amendment process was required for the anonymous call auction to be removed. Changes that allow the removal of the anonymous call auction are now in effect. The anonymous call auction will be removed on 19 March 2007 .
NZX has seen the benefit of these changes for companies listed on the NZAX Market. Two thirds of NZAX companies trading numbers, trading values and trading volumes increased in the comparative period in October and February 2005 and 2006. A number of those companies' trading figures have increased by more than 50% since the alignment of tick size and trading hours.
NZX Head of Products Geoff Brown said, “We're delighted to see that by making small adjustments to the NZAX in response to customer feedback, we've been able to improve these companies' ability to trade. As a consequence, more investors are using the NZAX platform. We hope to see more companies accessing capital and funding growth efficiently and cost effectively via the NZAX.”
The NZAX provides an even stronger and transparent vehicle for growth, allowing investors to have confidence in their investment options, while allowing growing companies to access capital easily in a best practice compliance environment.
To date, three NZAX Listed Issuers have graduated to the NZSX platform. In addition, 16 companies have used the NZAX to raise secondary capital cheaply and effectively, raising over $107 million.
