NZX announced today that it has entered into a non binding Memorandum of Understanding with new London stock exchange PLUS Markets Group.
Under the MOU, NZX and PLUS Markets will explore potential alignment of regulatory requirements that would enable companies listed on either market to dual list.
NZX Market Products Manager, Damas Potoi said, "We are very excited to be working closely with PLUS Markets to explore the provision of an efficient means for our NZX Listed companies to access markets in the UK and Europe via a 'passporting' arrangement.
"PLUS Markets share the same vision for high growth, high potential companies as NZX does.In this context we will be working on behalf of New Zealand companies with an export eye on those markets. A seamless dual listing process would enable them to manage costs effectively while extending their international profile and export capability," said Potoi.
Simon Brickles, CEO of PLUS Markets, said, "We are excited at the prospect of opening the door to additional international issuers via NZX, providing enhanced profile and liquidity across leading financial centres by offering access to a broader pool of equity capital than is provided by existing markets."
PLUS Markets signed a similar MOU with the operator of the Munich Stock Exchange in July this year.
For NZX, the MOU adds further weight to its strategy of strengthening New Zealand capital markets and exploring sound offshore opportunities. In this case the potential is for New Zealand listed companies to explore, evaluate and, ultimately, exploit.
NZX will advise the market as further developments in this potential partnership occur.
