In this section we provide a set of frequently-asked questions on the NZAX and a table of the key differences between the NZAX and NZSX Markets. The NZAX Listing Rules are available, as well as a set of application documents for prospective NZAX listed companies to download.

Key Differences
NZX operates two equity markets: the NZAX and NZSX. Depending on the size, scope and life-stage of a company, one may prove more suitable for listing than the other. NZX intends to support both markets with increased marketing activities, to raise the profile of all companies to more New Zealand investors. Both markets have strict regulatory regimes which are designed to enhance investor confidence, balanced with the need to make raising public capital in New Zealand as cost-effective as possible.

This table summarises some of the ways the markets differ.  However, companies considering listing on one of NZX's markets should consult with an NZX Firm or an NZX Sponsor to decide which market is best. Information on these accredited firms can be found using the Find a Broker tool.

  NZAX NZSX
Overall positioning
  • NZAX is a lower cost marketplace, designed for small to medium-sized, fast-growth businesses seeking a safe and efficient alternative capital raising facility.
  • NZAX also allows for ‘tailored use’ by non-traditional entities (eg co-operatives) seeking a mechanism for trading and price discovery.
  • NZSX is an established marketplace, designed for mature corporations seeking a full listing on the New Zealand securities market.
  • The NZSX market is home to some of New Zealand’s premium brands, the NZSX 50 (and other indices) and is NZX's heritage market, encompassing a best practice global market infrastructure and regulatory regime.
Who should list?
  • Small to medium sized businesses with existing board and governance procedures in place.
  • While no minimum size criteria has been stipulated, NZAX listings are most suited to companies with turnover of more than $5m per annum.
  • Minimum spread of 50 shareholders required.
  • Large New Zealand enterprises and established businesses.
  • Ideally suited to companies with existing boards, large numbers of shareholders, and revenue in excess of $50m per annum.
  • Minimum spread of 500 shareholders holding at least 25% of the company's shares.
Who to partner with to list
  • Accredited NZX Sponsors can assist companies through listing process.
  • No requirement for an organising broker but an NZX Firm may assist with distribution at IPO.
  • All listings to be arranged through an NZX Firm (organising broker).
Trading and liquidity
  • Client-order matching environment
  • Qualification for SciTech Index
  • Client-order matching environment.
  • Qualification for NZX Indices and ETFs
Listing rules and regulations
  • Two exemptions have been granted from the Securities Act 1978; to enable a simplified offering document and to enable more efficient ongoing capital raising options.
  • No prospective financial statements are required.
  • Single accounting standard (minimising duplication of effort).
  • Greater capital raising flexibility by introduction of all pre-break announcement.
  • More flexible corporate governance standard -no requirement for independent directors
  • Full Securities Act regulations apply.
  • Full Prospectus and Investment Statement required for listing.
  • Globally aligned corporate governance standards including requirements for independent directors
Exchange fees
  • Minimum entry fee of $7,500.
  • Annual fees limited to $5,000 for companies up to $15m market capitalisation.
  • Annual fees for companies over $15m market capitalisation are priced as per NZSX Market.
  • These fees are exclusive of GST and subject to change.
  • Minimum entry fee of $10,000.
  • Annual fees dependent on market capitalisation, ranging from $15,000 to $75,000.
  • These fees are exclusive of GST and subject to change.
Data and Information
  • Simplified access to critical information (hosted by NZX website).
  • Profiling at NZX forums specifically for NZAX Companies
  • Future improvements to website information planned.
  • Analyst coverage by NZX Firms.
Company Support
  • Dedicated help-desk and Listed Companies Relationship manager provided for NZAX issuers.
  • Listing checklists to assist companies through compliance process.
  • Dedicated Listed Company Relations manager for each firm.
  • Investor education planned and marketing initiatives to profile NZSX issuers.

 

Frequently Asked Questions (FAQs)
Download the AX FAQs where we explain what type of companies use this facility, why they use it, the sponsor network and how sponsors bring companies to the NZAX, and the costs and expectations as an NZAX Listed Issuer.