New Zealand Equity Capital Markets – trends and insights 2019

15 February 2019

Chapman Tripp's annual Equity Capital Markets – trends and insights publication, picks 2019 to be a year of improvement on the slower years of 2017 and 2018.

As predicted in last year's publication, 2018 was a transitional year. With intial public offering (IPO) activity extremely subdued and a decline in the number of issuers on the NZX Main Board for a further consecutive year, it was undoubtedly a sluggish year for New Zealand's equity capital markets. However, on a more positive note the NZX continued to outperform other global indices.

Key insights and predictions include:

  • Significant changes undertaken in 2018, including equity board consolidation, changes to fees and rules around on market trading and the new NZX Listing Rules, will have a positive flow-on effect in the next two years and beyond.
  • After only one IPO in 2017, and a grand total of zero IPOs in 2018, the work that has gone on to improve the markets will translate into more IPOs in 2019 and 2020.
  • The number of issuers on the NZX Main Board will decrease once again – but for the last consecutive year.
  • The use of AREOs – a type of rights offer that enables the accelerated receipt of proceeds from institutional investors – will continue, particularly by larger issuers. The use of share purchase plans (SPP) will decline, in part due to the changes in the NZX Listing Rules.

Read our Equity Capital Markets report

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