Unlisted sees renewed interest in market after ministerial exemption gives certainty
The trading platform has had increased interest from prospective new issuers since the announcement.
Unlisted, the share trading platform, is seeing renewed interest in its service after Commerce Minister Paul Goldsmith decided in August to grant it an exemption from the licensing requirements of the Financial Markets Conduct Act.
The trading platform, which currently has 14 listed securities, has had increased interest from prospective new issuers since the announcement, according to its latest newsletter published on its website today.
"The key message now is that we have got certainty, people are prepared to consider using the Unlisted market," said David Wallace, a director at Armillary, which manages Unlisted. "It would be nice if we can add another five to six issuers over the next 12 months."
The granting of a ministerial exemption from the licensing requirements of the Financial Markets Conduct Act 2013 means Unlisted can continue to operate as an unlicensed financial product market and removes doubt over the operation's future, it said in the newsletter. Unlisted faced stiff opposition from New Zealand's only registered stock market operator, NZX, to remain an unlicensed platform.
"The uncertainty created by the legislative reform process has severely restricted Unlisted's development and marketing initiatives," Unlisted said in its newsletter. "With its status now clear, market participants can expect to see new platform developments and marketing initiatives as we consolidate our position as the financial product market of choice for small to medium-sized issuers and for those that have sourced capital through crowd funding."
Unlisted, which started in 2004, expects to spend as much as $100,000 to upgrade its trading platform, Mr Wallace said.
Companies trading on Unlisted include Silver Fern Farms, New Zealand's biggest meat processor and marketer, Queenstown tourism company Skyline Enterprises, and biotechnology company PharmaZen. Unlisted had a market capitalisation of $1.18 billion at September 30, up from $1.03 billion at March 31, it said.
(BusinessDesk)
Tina Morrison
Thu, 22 Oct 2015
Thu, 22 Oct 2015
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Unlisted sees renewed interest in market after ministerial exemption gives certainty
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