Chapman Tripp's annual
Equity Capital Markets – trends and insights publication, shows innovation and change abounds for New Zealand's equity capital markets.
The consolidation of NZX’s boards, changes to fees and rules around on-market trading, innovations to encourage investor participation, the new NZX Listing Rules and the formation of – and recommendations from – the industry-led body, Capital Markets 2029, drove significant change to New Zealand’s equity capital markets in 2018 and 2019.
Other predictions for 2020 include:
Improved IPO activity though still subdued due to the low interest rate environment and a strong focus on yield.
More take-private transactions in 2020, due to the fact that a number of listed companies are trading quite significantly below NTA per security.
More direct listings, where a company lists on the stock exchange but doesn’t raise new capital at the time of its initial listing. A recommendation in the Capital Markets 2029 report was to promote alternative pathways to listing, such direct listing.
More environmental, social and governance (ESG) products brought to public markets.
Click here to read the publication.