Proposed new NZX Listing Rules

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The NZX today released the second stage of its Listing Rules Review, with a draft of the proposed updated rules and a consultation paper outlining the proposed changes.

As expected, the new rules will see the current three equity markets (NZX, NZAX and NXT) rolled into one market, with a proposed standard set of rules applying to all companies.  The eligibility requirements for equity listings will be changed to the following:

  1. Company’s must have a minimum of 300 shareholders;
  2. They must have a minimum free float of 20%;
  3. Minimum market capitalisation will be $15m.

The NZX has signalled the NXT market will close for new listings once the feedback on the rules has been received and they are ready for filing with the FMA. We believe this will likely be around late July, early August. This creates a defined window for any companies wanting to take advantage of the lower cost NXT market to list on the New Zealand Stock Exchange and we would encourage any companies considering this, to contact us immediately.

For companies currently listed on the NZAX and NXT markets, they will have from January 1, 2019 until June 30, 2019 to transition to the new combined Board and comply with the proposed new rules. However, based on  past experience, the NZX is likely to be very accommodative to existing listed NZAX and NXT companies in grandfathering them into the new regime.

For more information about the proposed changes, click on the following Link

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