The New Zealand Alternative Market (NZAX) is proving to be a strong platform for growth companies to raise capital, trade and grow, thereby delivering value to shareholders.
Ten NZAX listed companies have delivered annualised returns of over 12% to shareholders since listing on the NZAX. The market capitalisation of the NZAX has grown over $300 million in the three and a half years since it was established, at $525 million today.
Trading and capital raised on the NZAX market has far outstripped that of the unregulated Unlisted.
As at beginning of May, NZAX had five times the trade numbers, four times the volume of shares traded and almost three times the value traded than on Unlisted since both platforms launched at the end of 2003.
Over $170 million has been raised on the NZAX Market through initial public offerings (IPO) and secondary capital raisings, compared with under $50 million on Unlisted.
NZX Markets Development Manager, Geoff Brown said, “NZAX companies choose to fuel their ongoing growth with market-raised capital. To date 70% of total capital raised on the NZAX Market is through secondary capital raisings.
“Comvita and Just Water International have used secondary capital raisings on the NZAX to make acquisitions that have forged them strong positions in global markets.”
Three NZAX companies, including Comvita, have grown to a level that has propelled them on to the NZSX Market. In the same time period there have been four delistings from Unlisted.
April was a month of developments and success for NZAX Listed companies, both locally and globally.
The New Zealand Wine Company announced completion of their 2007 grape crush, exceeding the previous record crush from last year by over 640 tonnes and released the world's first CarboNZero® wines late last year.
NZ Windfarms Limited have announced their $75 million secondary capital raising was in strong demand, with institutional investors' and NZX firms' allocations being oversubscribed by 40%. NZ Windfarms have signalled their intention to move to the NZSX following this capital raising, which will provide funding for the completion of the Te Rere Hau wind farm and other new wind farm developments.
Fellow NZAX listed Windflow Technology is manufacturing the next batch of 14 turbines for the wind farm and is anticipating orders for the remaining 78 turbines by the end of 2008.
Significant business developments in the US were also a feature of NZAX announcements in April.
A2 Corporation Limited announced the launch of its premium a2 milk(TM) into the US market through a deal with a leading supermarket chain, Hy-Vee. Connexionz Limited won an approximately NZ$700,000 contract to supply a real time passenger information system to the City of Charlottesville , located in the State of Virginia .
The NZAX is an ideal environment for innovative businesses seeking efficient means to raise capital for growth. To find out more about the NZAX Market or the upcoming NZAX seminars please contact listings@nzx.com or phone (04) 496-2855.
