Jul 8th 2008Press Releases

Slump won’t affect Coast’s NSX float

A dramatic slump in the value of company floats on the Australian Securities Exchange in the first half of 2008 has not dented prospects for securing listings on the Sunshine Coast board, expected to be launched on the National Stock Exchange in the coming months.

This was the assessment of Noosa Institute for Socio-Economic Research deputy chairman Sean Rothsey speaking at an NSX presentation held at Peregian Springs on Thursday.

Figures just released by Pricewaterhouse Coopers showed just 21 companies, which raised a total of $334 million, had floated on the ASX in the six months to June 30. That was significantly lower than the corresponding period in 2007 when 33 firms listed, raising $4.5 billion. But Mr Rothsey said NISER was talking to a number of Sunshine Coast business owners about being part of the region’s own board.

“Geelong is launching its board on July 11 and we’ll firm up a date for our launch sometime after that,” he said. “We’ve got three good prospects we’re in talks with and I would hope we’ll have our first company on board by year’s end.”

Mr Rothsey said NISER’s role in the NSX process was to create awareness of the advantages of listing on the NSX, which he said included:

  • Raising additional capital
  • Lifting a firm’s profile
  • Providing employee share plans
  • Providing a succession plan
  • Using the NSX as a stepping stone to an ASX listing

He said NISER was also advising people on the benefits of becoming an NSX nominated advisor or facilitator. Nominated advisers asses a company’s suitability and readiness to list on the NSX, while facilitators are usually specialists in one particular area.

Jamie White, a solicitor from Southport law firm Ffrench Commercial Lawyers (a registered facilitator with the NSX) spoke about the “risk minimization” aspects of listing on the exchange.

He said that process included identifying risks and complying with laws in IP, company structuring, contractual matters and IR issues.

“In IP, for example, we look at asset identification, IP ownership and protection, do IP audits and website audits… it’s all part of risk minimization,” Mr White said.

Simon Gamble from Macquarie Financial Services at Noosa spoke about a stockbroker’s role in the listing process. NISER plans to hold monthly information sessions about aspects of NSX Listing

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