Geoff Brown, NZX Markets Development Manager believes the extensive consultation and feedback with industry participants has helped formulate the optimal structure for the new market.
"We set out to build this market based on four main principles - high quality companies, cost efficiency, more open market access through alternative channels, and tailored secondary market support," said Brown. "We're confident that the NZAX Listing Rules we've drafted and submitted to the Securities Commission will deliver on these principles and will offer more New Zealand companies a cost-effective and efficient means of capital raising, as well as an ideal vehicle for capturing price discovery."
Once the Securities Commission has reviewed the draft Listing Rules, NZX will submit the Rules to the Minister of Commerce, who will then have 15 working days within which to determine whether to apply the "approval process" or the "disallowance process" to the proposed rules. If the disallowance process applies the Minister has 40 working days from the date the rules were received to disallow all or part of the rules.
NZX is also making additional submissions to the Securities Commission in regard to the exemptions it applied for on the procedures and documentation required for offering securities on NZAX.
NZX is hopeful that the regulatory framework (comprising of the exemptions and Rules) will be in place by 18 August 2003.
NZX is also nearing completion in the development of the NZAX market technology and trading system, in conjunction with Computershare Ltd. If the Listing Rules are finalised in August as it is hoped, NZX anticipates rolling this technology out to market participants throughout September. Installation will be accompanied by full training and support and it is expected that the NZAX market will be open for trading in November 2003. Detailed information packs on the NZAX listing process on the basis of the current draft listing rules for the NZAX Market will be distributed to all potential companies and sponsors who are registered with NZX, within the next week.
NZX also intends to hold information seminars in all major centres throughout July, to update market participants on further developments and timing.
The first of these seminars will be held in Christchurch (22 July), Dunedin (23 July), Auckland (29 July), and Wellington (31 July), with more planned for early August.
For further information about the NZAX information packs or details about the NZAX information seminars, please contact: Neil.hammond@nzx.com.
