22 Aug 2012

NZX to urge small companies to list

11:30 am on 22 August 2012

NZX is expecting another period of subdued activity and its priority over the next six months will be to encourage small firms to list on the exchange.

The exchange's profit after tax fell 28% to $3.25 million in the six months to June - compared to the same period last year.

Chief executive Tim Bennett says there was less capital-raising and no initial public offerings in the first six months - a trend he expects to continue.

He says the company's focus will be to make sure listing remains an attractive option, particularly for smaller and mid-sized businesses.

A partial float of Mighty River Power and the Trading Among Farmers plan are the only capital-raisings expected in the second half of the year.

Mr Bennett says most exchanges are experiencing a sharp downturn in activity and the NZX has had a solid performance.

"Half-on-half of revenues were up slightly - I think that's a particularly good result in the blobal environment," he says.

"We have seen other exchanges' revenues drop sharply in securities trading over the past six to 12 months as capital markets activity declines."

The NZX share price dropped 4 cents to $1.10 on Monday.