Most Read Contributor in New Zealand, September 2016
IPO activity in New Zealand dropped back in 2015 after
two extraordinary years. Despite some doom and gloom headlines
about recent market turbulence, secondary capital raising and
trading activity on the NZX was strong, with a 20.1% year-on-year
increase in capital raised. We expect an upturn in domestic IPO
activity this year relative to last year, but not a return to 2013
and 2014 levels.
publication explores current trends in New Zealand's equity
capital markets (ECM) after an intriguing 2015 and
outlines our expectations for 2016.
Expected trends in 2016
An upturn in IPO activity from last year, but not a return to
2013 and 2014 levels.
A more circumspect retail investor audience for private equity
IPOs, reflecting the fallout from Dick Smith Electronics.
More innovative transactions through use of the increased scope
provided by the Financial Markets Conduct Act (FMCA).
Strong growth in secondary capital raisings following a buoyant
year in 2015.
Further block trades, with a number of major shareholders
coming off escrow this year.
Greater use of pre-registration advertising to 2016 – New
Zealand equity capital markets at a glance reduce the information
imbalance between retail and institutional investors – a
possibility created by the FMCA and encouraged by the Financial
Markets Authority (FMA).
More use of dual NZX-ASX listings following the extension of
ASX Foreign Exempt status to NZX Main Board listed issuers.
NXT Market, launched last year and targeted at SMEs, looks to
find its feet in its second year of trading.
Growing popularity of exchange traded funds to continue with,
perhaps, challengers emerging to NZX owned Smartshares.
Busy regulatory programme by the Ministry of Business,
Innovation & Employment (MBIE), the FMA and the
Chapman Tripp has acted on most of New Zealand's recent ECM
transactions, including acting on 14 (12 as issuer counsel) of the
22 IPO's and NZX Main Board listings in New Zealand since 2013.
Our national ECM team is the largest and most highly regarded in
New Zealand with a reputation for acting on the country's most
significant and complex deals.
The information in this article is for informative purposes
only and should not be relied on as legal advice. Please contact
Chapman Tripp for advice tailored to your situation.
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