As greater numbers of firms are predicted to be listed on both the NZX and ASX, what should lawyers expect in the coming year?
Two thirds of NZX IPOs also undertook listings on the ASX in 2015, and this number is set to increase this year, said the experts at Chapman Tripp.
According to the firm’s latest IPO report, New Zealand Equity Capital Markets: Trends and Insights, this trend is driven by the ASX decision to give NZX Main Board listed issuers access to an “ASX Foreign Exempt” listing.
This exempts New Zealand firms from the majority of ASX Listing Rules, reducing their compliance burden in the process.
Having a dual listing will draw in New Zealand firms because it provides issuers with access to institutional investors that may otherwise be unable to invest in NZX-only listed companies, Rachel Dunne, Partner in Chapman Tripp’s Commercial and Corporate Team, told NZ Lawyer.
“This may be particularly relevant for companies that have major shareholders that wish to sell down at some point,” she said.
Additionally, more NZ firms may open up IPOs to Australian retail investors under the trans-Tasman mutual recognition (T-TMR) scheme given the strong links between the two countries.
In fact, 75% of all offers of equity securities registered, including listed and non-listed issuers, were Australian T-TMR offers at the time the report was released.
“New Zealand securities lawyers need to be familiar with the T-TMR regime under the FMCA which includes changes from the equivalent regime under the Securities Act,” Dunne said.
The increase in trans-Tasman offers will provide greater ability for local investors to access a wider range of investment opportunities, she added.
“One point to bear in mind is that previously it was difficult to track how many of these offers there actually were.”
Now, the New Zealand Disclose register provides a transparent way for people to assess, compare and track offers, including those originating from Australia under the T-TMR regime, she said.
According to the firm’s latest IPO report, New Zealand Equity Capital Markets: Trends and Insights, this trend is driven by the ASX decision to give NZX Main Board listed issuers access to an “ASX Foreign Exempt” listing.
This exempts New Zealand firms from the majority of ASX Listing Rules, reducing their compliance burden in the process.
Having a dual listing will draw in New Zealand firms because it provides issuers with access to institutional investors that may otherwise be unable to invest in NZX-only listed companies, Rachel Dunne, Partner in Chapman Tripp’s Commercial and Corporate Team, told NZ Lawyer.
“This may be particularly relevant for companies that have major shareholders that wish to sell down at some point,” she said.
Additionally, more NZ firms may open up IPOs to Australian retail investors under the trans-Tasman mutual recognition (T-TMR) scheme given the strong links between the two countries.
In fact, 75% of all offers of equity securities registered, including listed and non-listed issuers, were Australian T-TMR offers at the time the report was released.
“New Zealand securities lawyers need to be familiar with the T-TMR regime under the FMCA which includes changes from the equivalent regime under the Securities Act,” Dunne said.
The increase in trans-Tasman offers will provide greater ability for local investors to access a wider range of investment opportunities, she added.
“One point to bear in mind is that previously it was difficult to track how many of these offers there actually were.”
Now, the New Zealand Disclose register provides a transparent way for people to assess, compare and track offers, including those originating from Australia under the T-TMR regime, she said.
