NZX move may suit small companies

Tuesday, 23 September 2008

NZX Ltd is exploring ways of working with a competitor to the London Stock Exchange that might suit small companies.

NZX has signed a memorandum of understanding with Plus Markets that could lead to cost effective dual listings of companies.

Great hopes were held out for the AIM market run by the London Stock Exchange, which was designed as a relatively hassle free market for small to medium sized companies but only one New Zealand company has listed on it.

Plus Markets was set up by Simon Brickles who was involved in setting up AIM and has now set up a competitor to it.

NZX chief executive Mark Weldon said Plus Markets had an ambition of setting a standardised rule set and global listing platform for small and medium sized companies who want to raise capital.

He said there was good cultural alignment and direction of travel between the Plus and NZX but there was still a lot of detail to discuss.

NZX products manager Damas Potoi said the exchanges would explore alignment of regulatory requirements under the memorandum to enable companies listed on either market to dual list.

NZX listed companies would be able to access markets in the United Kingdom and also Europe via a "passporting" arrangement.

Plus is fighting so that companies trading on AIM can also trade on its exchange. At present 90 companies from a total 1600 on AIM are traded on Plus.

- NZPA