Boost for SMBs as Govt grants NZX exemption

Small and medium-sized businesses across New Zealand will now be able to list and raise capital easier, thanks to new government plans announced this week.

Revealed by Commerce Minister Craig Foss, the government is granting a ministerial exemption to allow NZX to establish a new growth market with an alternative disclosure regime.

“An alternative disclosure regime will make it easier for firms to manage their disclosure obligations internally,” Foss says.

The exemption, recommended by the Ministry of Business, Innovation and Employment (MBIE), is supported by The Financial Markets Authority (FMA).

“This could lower the cost of capital-raising for New Zealand’s smaller and high-growth businesses,” Foss adds.

“The new market will have additional features such as a research provision, market-making services and the support of a dedicated sponsor.

“These features are designed to support liquidity and efficiency in the market.

“I am confident the alternative disclosure regime and the additional features will assist more small and medium-sized enterprises to list and raise equity capital publicly.

“The new market may also give New Zealanders, who have the right risk appetite, a greater number of firms to invest in.”

According to Goss, encouraging new public growth markets is part of the government’s Business Growth Agenda.

Follow Us
on Google+
Sponsored

Android App Review: St John NZ

NetGuide Apparently more than nine people go into cardiac arrest every day in New Zealand, and their chances of survival are not high. If it happened to someone near you would you know what to do to help them? Me neither, but the St John NZ app increases their chances by explaining how to do CPR in a way anyone can follow.   Read More →