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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.