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It has been a tremendous year for the capital markets on all fronts including, capital raisings, listings, trading activity and increased participation in the markets by New Zealanders.
The NZX 50 Index is up 17.9% since the start of this year, delivering strong returns to investors.
Initial Public Offering (IPO) activity has resulted in total new capital listed this year of $7.3 billion. Additional capital deployed into the market through secondary capital raisings and sell downs by strategic investors was $5.7 billion.
Including Airwork Group’s listing today, there have been 10 listings this year, ranging from Mighty River Power in May with $3.7 billion market capitalisation on listing, to the reverse listing of Mad Butcher via Veritas, which had market capitalisation of $58.3 million.
Listings in 2013 were Airwork Group, GeoOp, Meridian Energy, Mighty River Power, SLI Systems, Synlait Milk, Snakk Media, Wynyard Group, Z Energy and the reverse listing of Mad Butcher via Veritas.
The total number of trades increased by 31.6% compared to last year, and is up 96% compared to 2008. Total value traded is up 47.9% year to date over last year. Small trades, less than $50,000 in value, are up 30.7%.
Driving the increased activity has been renewed interest by New Zealanders in the markets. New Zealanders have invested approximately an additional $2 billion in the markets through direct investments and KiwiSaver. This has resulted in total direct domestic equities investment of $24 billion and KiwiSaver assets invested in New Zealand equities of $1.9 billion.
In addition, this year 115,149 CSNs (Common Shareholder Numbers) have been created for new investors, taking the total number of active accounts to 585,808. The number of new CSNs created this year is approximately five times the number created in 2012 of 26,410.
Commitment to Auckland signified by new NZX stock ticker
Installation is currently underway at NZX’s Auckland office, Zurich House, 21 Queen Street, of the largest high definition outdoor financial information screen in Australasia.
NZX’s new ticker is set to become an established feature of the Auckland cityscape. It will display 24-hour markets coverage, including indices, stock prices, futures, news, currency data and other relevant information.
NZX CEO Tim Bennett commented: “We have a renewed focus on the Auckland market and our customers and stakeholders here. NZX’s new stock ticker project reinforces our commitment to Auckland and to increasing the public profile of the capital markets, by providing valuable financial news and information to the public.”
“With the majority of NZX’s trading and advising participants headquartered in Auckland, more than 80 listed issuers with registered offices and many more with significant operations here, clearly we recognise the strategic importance of Auckland to the markets.”
Once completed the ticker will run around the north and east faces of the building. It is approximately 1 metre high and 64 metres long (32 metres per side).
NZX has completed the ticker project in partnership with NEC New Zealand. It is being installed by New Zealand digital display technology provider, Eyemagnet, and Out and About Media and Marketing (OAMM).
NEC Director & General Manager for NEC in New Zealand, Leonard Dench, commented: “NEC is proud to partner with NZX as part of our renewed commitment to innovation collaboration in New Zealand.”
“Interactive delivery of information to help businesses and communities prosper is an important part of our global focus and Auckland’s diversity creates many opportunities to work together on new exciting ways of doing that.”
