NZX is consulting on listing rules, updated trading rules and updated New Zealand Markets Disciplinary Tribunal Rules for a new growth market. It is also consulting on certain legislative exemptions that will be necessary to accommodate the disclosure framework for this new market.
The target issuers for what NZX is calling its “New Market” are small and mid-sized businesses, especially higher growth companies. Under the current proposals, to be eligible for listing a company must have:
- an expected market capitalisation of between $10 million and $100 million;
- a minimum capital raising of $5 million prior to listing on the New Market (if capital is being raised);
- at least 50 shareholders; and
- a free-float of 25%.
There are two parts to the consultation. The first part contains NZX’s consultation as to whether the New Market should be subject to a periodic disclosure framework rather than continuous disclosure. Submissions on this part closed on 27 March 2014. The second part contains NZX’s consultation in relation to the market rules that will regulate the New Market. Submissions on this part close on 4 April 2014.
For further details and copies of the consultation documentation visit NZX’s website here.