The Australian Stock Exchange recently announced amendments to its listings rules to allow New Zealand-listed companies easier access to the Australian market.
Under the new regime, which came into effect on 9 September, companies listed on the Main Board of the NZX will fall within the Foreign Exempt Listing category of the ASX.
According to Minter Ellison capital markets partner Daniel Scotti, this is likely to lead to an increase in the number of dual-listed entities by decreasing the compliance burden and expense involved.
“[The change] should result in a greater number of New Zealand companies listing on ASX, giving Australian investors an easy way to trade in and out of the stock of quality issuers from 'across the ditch',” he said.
“For the most part, they won't generally have to prepare an Australian prospectus or information memorandum in order to list on the ASX. And they won't have to comply with two sets of often conflicting and unnecessarily duplicate listing rules."
Nonetheless, he warned New Zealand companies would still need to file an ASX listing application, including the company’s financial statements, disclosures, and other high-level information.
Minter Ellison was involved in the ASX’s public consultation on the listing rules amendments.
In the firm’s submission, it called for the technical relief from ASIC for dual-listed entities where those entities were relying on the New Zealand equivalent of low-doc offering pathways.
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