Harbour Asset Management managing director Andrew Bascand.
Harbour Asset Management managing director Andrew Bascand.
New Zealand's share market is expected to struggle for new initial public offerings in 2016 without the impetus of a privatisation programme, which is whetting appetites across the Tasman.
There were six new listings on the NZX in 2015, including two compliance listings, down from 12 main board IPOs andfour compliance listings on the NZAX junior market a year earlier when the Government's partial privatisation programme was completed with the listing of Genesis Energy.
Over the same period, Australia's ASX rolled out 77 new listings, up from 71 in 2014, and Harbour Asset Management managing director Andrew Bascand expects to see more opportunities across the Tasman this year with a greater number of companies ripe for listing.
"Even proportionally, it seems there is a deeper pool of companies owned by private equity for a start; some are startups and others are turnaround situations," Bascand said. "In addition, the government sector in Australia has been very active in considering privatisation opportunities. The privatisation process in Australia is alive and well, whereas in New Zealand we seem to have hit the wall.
"There are many more things we could consider privatising in New Zealand, but there's no political appetite to do so at the moment."
Harbour's Bascand said the market was "quite open" for IPOs, but there didn't appear to be that amount of activity here at the moment.
He said the property sector could see IPOs this year, and they would be welcomed if structured correctly.
Several companies last year signalled intentions to list on the NZX, but when global equity markets went through a turbulent period during the middle of the year, vendors' appetite to go public dimmed.
With 2016 underway, some of those firms that tried their luck earlier are thought to be considering a second attempt, including poultry producer Tegel Foods, equipment rental firm Hirepool, building supplies and distribution group Carter Holt Harvey, and broadcaster Mediaworks.
