Overview

NXT is a public equity market aimed at small to mid-sized businesses, with reduced costs and complexity compared to the NZX Main Board. All companies listing on the NXT Market need to appoint an advisor to help prepare for the listing process and manage the IPO. Northington Partners is an accredited NXT Market advisor and is very well placed to advise companies considering a NXT listing.

A new market for small, high growth businesses

Simple / Supportive / Targeted / Effective

  • A market aimed at small to mid-sized businesses
  • Reduced costs and complexity for listed companies, both during the listing process and on an ongoing basis
  • More support for companies listed on the market
  • A streamlined regulatory environment, with a set of short, simpler rules and procedures
  • The presence of market making to aid efficiency and liquidity
  • Better information on companies for investors through quarterly updates, research coverage, and reporting by companies of Key Operating Milestones

The NXT Advisor

NXT advisors will help companies list and extract the most value from the NXT market. Specific roles include:

  • Preparing the listing document
  • Setting and revising Key Operating Milestones
  • Establishing sound governance policies
  • Reviewing strategic business plans and company performance on a quarterly basis
  • Ensuring market compliance

Listing Criteria

  • Expected market capitalisation of $10m – $100m
  • At least 50 shareholders where 25% is in public hands
  • Minimum of 2 Independent Directors
  • Short prospectus and no prospective financial information

Fees

  • NXT companies will incur listing fees, annual fees and professional adviser fees
  • For smaller companies, listing on NXT is intended to be less expensive than the NZX Main Board
  • Ongoing annual fees on NXT are fixed at $30,000 (including research)

Disclosure

  • NXT does not require 'continuous disclosure'
  • Key Operating Milestones to measure and track NXT company performance
  • Quarterly business updates with immediate disclosure for prescribed events
  • Audited annual and half year reports published every year
  • Short standardised templates available for disclosure

Support

  • All NXT companies will receive independent research coverage to provide additional information to investors
  • Dedicated market maker to improve depth and liquidity of the market
  • Engaging a NXT Advisor is a listing requirement and advisors will provide full support for up to 36 months post listing

IMPORTANT DOCUMENTS

For companies considering listing on the NXT Market, below are some important documents available for download:

  • Northington Partners - NXT Market Overview
  • Listing as a NXT company
  • Key Operating Milestones
  • Migration to NZX Main Board