"We're thrilled with the response we've had from the professional services and investment banking communities with regard to being NZX Sponsors," said Geoff Brown, NZX Markets Development Manager. "We aimed to have 10 Sponsors in the first year, so we're well ahead of that goal and see this as a real sign of confidence in the structure of the new market and its ability to succeed."
NZX set up the Sponsor role in recognition of the strong and long-standing relationships many companies have with professional services advisors outside of the traditional IPO process. Trained professionals, such as banks, brokers, accountants, and lawyers are natural partners for smaller firms moving from private company to NZX Listed status and it is expected that they will play a critical role in feeding more companies to the new NZAX Market in future. NZX Sponsors are accredited to bring companies to the NZAX Market only.
"KPMG Corporate Finance is very excited to be one of the first NZX Sponsors," said Adrian Dewey, Associate Director, KPMG Corporate Finance. "The arrival of the NZAX Market broadens the range of financing options available to small and medium sized companies, a sector that is core to KPMG Corporate Finance's client base."
Mr Dewey went on to say "The new market will also allow investors informed access to such companies, which can only be beneficial to the economy as a whole."
David Quigg of corporate law firm Quigg Partners said "The NZAX will offer flexibility to companies who are seeking to raise capital and/or improve liquidity for shareholders. Quigg Partners has a number of clients eager to gain access to the NZAX for these reasons".
An NZX Sponsor's role is to:
- Advise companies on their requirements for achieving an NZX Listing on the NZAX Market;
- Liaise with NZX on behalf of the applicant;
- Apply to NZX for listing on behalf of the applicant, and ensure if capital is being raised, successful allocation of securities to investors; and
- Advise NZAX companies on their obligations once listed.
