By ELLEN READ markets writer
The London Stock Exchange could list its first New Zealand company within a year.
The head of the exchange's Alternative Investment Market (AIM), Simon Brickles, was in New Zealand this week touting for business. He said there was plenty of interest but declined to give details, citing
confidentiality.
AIM is the London exchange's international market for smaller, growing companies.
With a function similar to New Zealand's unlisted market, AIM is regulated by nominated advisers who take responsibility for the firms they recommend for inclusion.
This means the AIM regulatory framework is less stringent than for companies with a full listing.
The advisers were vetted before being accepted and their reputations depended on the conduct of the companies they represented, Brickles said.
"That's my safety net. We do have strict disclosure regulations but it is a caveat emptor market."
New Zealand advisers would also be sought on New Zealand companies for quotation.
"AIM offers smaller, growing companies in New Zealand the opportunity to raise funds in Europe, to gain a wider pool of investors and liquidity whilst enjoying the benefits of being on a local exchange."
He said it was apparent there was a financing gap in New Zealand for mid-sized companies wanting to raise more money.
While realistically an offer of around $8 million would be needed to be cost effective for the company, Brickles said AIM was more concerned with the growth potential of new firms than their size.
Since it was created in 1995, more than 850 companies have used AIM as a growth vehicle, with more than $24 billion raised on the market. Individual market capitalisations on AIM range from $15 million to $350 million.
When most world markets were quiet last year, AIM had 94 initial public offerings, representing over one-third of IPOs in Western Europe.
AIM has 41 international firms listed, including 11 from Australia.
One AIM company, West 175 Media Group, has a Wellington office.
London stock exchange
