The Stock Exchange of Newcastle currently has two companies listed, Pegmont Mines NL and Winpar Holdings Limited, with the Australian Wine Exchange to list its wine securities later this year.
Proceeds from the capital raising will enable NSX to appoint additional staff, including a business development manager with responsibility for increasing listings.
According to NSX chairman, Mr Steven Pritchard, the capital raising meant the exchange could put in place the infrastructure necessary for expansion.
"We will now be able to market NSX and position it as a genuine alternative to the Australian Stock Exchange, particularly for smaller companies," Mr Pritchard said.
NSX listing requirements are a minimum market capitalisation of $500,000 and minimum shareholder numbers of 50, compared with the ASX requiring minimum market capitalisation of $10 million and 400 shareholders.
NSX provides a listing opportunity for companies, building societies, credit unions and investment syndicates whose size and corporate structure prevents them from listing on the ASX.
NSX is issuing 1,200,000 shares at $1.00 each with a right to accept over subscriptions of up to $1.2 million.
The Stock Exchange of Newcastle was established in 1937 and by the 1970s had 200 companies listed.
With centralisation of the Australian Stock Exchange and introduction of SEATS in 1990, all listed companies transferred to the national exchange, leaving NSX dormant.
NSX was reopened on 21 March 2000 by the Honourable Joe Hockey, Minister for Financial Services and Regulation, ,P. Stockbroker members of the exchange are Cameron Stockbrokers Limited, County Investment Advisers Pty Limited, Pritchard & Partners Pty Limited, Salomon Smith Barney Australia Securities Pty Ltd, Scorers, J. M. Tonkin & Co, H. H. Walls & Co and Westpac Securities Ltd trading as Westpac Broking.
Among marketing initiatives planned by NSX are increased contact with companies suitable for listing, advertising, the distribution of a Guide to Listing on the Exchange and making trading information more widely available.
NSX sees advantages of listing on NSX as being to provide liquidity for shareholders, access to capital, facilitation of employee share ownership plans and increased public profile.
Listing of Australian Wine Exchange securities is expected later this year and, through securitisation of wine inventories, investors will have access to current vintages from producers such as Orlando Wyndham, Katnook Estate and Howard Park.
The Stock Exchange of Newcastle is a fully electronic exchange with all trading through the Newcastle Electronic Trading System (NETS), based on the Australian's Stock Exchange's SEATS trading software.
Subscription to the offer requires completion of forms attached to the offer information statement produced by and available from NSX and lodged with the Australian Securities and Investment Commission.
