About the NSX
NSX operates a well regulated, transparent orderly and highly efficient market. Because our listing rules are designed to accommodate the unique requirements of emerging companies, the securities listed on our market cover a diverse range in size, activities and geographic location.
Common Questions & Answers about Regional Exchanges
What is a Regional Exchange?
Regional Exchanges operate as sub-markets of the National Stock Exchange of Australia (NSX). While they are not licensed Stock Exchanges in their own right, they do provide access to all the benefits and opportunities of the broader NSX Market for regionally based businesses.
NSX can support regional economic development by creating a regional market that brings together the local investment and business communities. By working alongside existing infrastructure (i.e. Councils, business chambers, hubs, clusters, incubators, regional development boards and business forums), NSX can create a regional capital market that allows businesses to access local capital and list earlier in their growth phase.
Regional Exchanges have the advantage of creating a Stock Exchange presence within a region, without the considerable dollar investment or long lead times normally associated with establishing a separately licensed Exchange. They can, therefore, start to offer solutions to regional business in a very short time frame.
What are the benefits of a Regional Exchange?
- Allows local companies to raise capital at an earlier stage in their growth
- Creates a flow of capital within the region, as local investors are a significant source of capital for local business
- Adds to the financial standing and economic development of the region
- Establishes local NSX accredited Brokers to provide expert advise to local companies
- Establishes local Nominated Adviser firms to provide advise pre and post listing to companies on issues such as corporate governance
- For investors, it provides a consolidated view of the investment opportunities in the region
- Creates a business forum for educating local business about the benefits of an IPO
- They are an expedient and low cost solution for creating an Exchange presence in the region
What Regional Exchanges have been established?
The NSX Sunshine Coast Exchange will be represented by the National Institute for Socio-Economic Research (NISER). NISER was established in 2006 as an independent, not for profit organisation with a commitment to improve socio-economic development and research regionally, state and nationally.
Businesses on the Sunshine Coast can now benefit from a transparent, regulated capital market and it helps those companies move to the next step, attracting more capital, more investors and more business to the Sunshine Coast.
NSX Gold Coast Exchange – July 2007
The NSX Gold Coast Exchange is represented by Business Growth GC – a not for profit organisation aimed at supporting middle-market businesses through raising the profile of the Gold Coast as an excellent city to establish and grow sustainable business. The establishment of a Gold Coast exchange is a first where companies, investors and advisers can come together, developing opportunities and keeping capital within the region.
The Gold Coast Exchange opens up local companies to greater opportunities and provides the structure in which they can grow, attract investment, manage ownership changes and improve reporting to shareholders. It provides a powerful tool to assist local businesses in reaching their full potential and giving the local community opportunities to invest in local companies.
NSX Wollongong Exchange – October 2005
The NSX Wollongong Exchange was the first regional Exchange developed under the NSX’s Regional Business model. It is represented by a partnership with Wollongong City Council and the Illawarra Business Chamber. Wollongong Council recognised within its future economic development strategy, the need to support and grow the regions’ SME business sector, and saw the NSX Wollongong Exchange as an appropriate solution, given its focus on listing SMEs and growing companies.
How do regional businesses list?
All businesses regardless of their regional location list on the full NSX Market. Regional businesses introduced by a Regional Exchange also derive the benefit of a dual listing. For a company to list it must promote itself widely to potential investors. Regional companies gain the advantage of having a second channel of promotion through the Regional Exchange. With the assistance of local Brokers and Advisers, the local Exchange can be an effective mechanism for raising investor awareness and sourcing capital within the region itself.
Regional businesses are listed on both www.nsxa.com.au and through a customised regional exchange website i.e. www.wollongongexchange.com.au.
What factors support a Regional Exchange?
- A strong strategic fit with the economic development policies of the region
- The presence of a significant number of regional SMEs
- An investor base
- The presence of regional business Advisory services
- Other supporting stakeholders i.e. Universities, Industry clusters, Business Chambers
What companies can list on the NSX?
In broad terms, for a company to have its securities listed for quotation on the NSX, it only has to meet the following general criteria:
- Minimum of 50 shareholders (each with $2000 held);
- Minimum market capitalisation of $500,000;
- At least 25% of the issued shares in the hands of the public (i.e. interests not associated with the directors),
- Two-year adequate track record (or your IPO is underwritten by an approved underwriter)
- Appointment of a Sponsoring Participant & Nominated Adviser.
What companies are listed on NSX Markets?
- Over 110 securities are currently listed on NSX Markets
- Industry sectors include: Resources, Mining, Biotech, Community Banks, Telco’s, Property
- Listings across every State and Territory in Australia
What are the benefits of listing on the NSX?
- Provides access to capital
- Places an objective market value on the company
- Encourages employee commitment via share ownership schemes
- Increases a company’s ability to make acquisitions
- Heightens the company profile
- Enhances status with customers and suppliers
- Provides a succession plan for company founders
- Increases trade-ability of securities.
For further information contact:
Sean Rothsey
NISER Deputy Chairman
49 Maple St
PO Box 736
Cooroy, QLD 4563
Tel: +61 7 5442 5050 Fax: +61 7 5442 5060
Email: niser@niser.org.au
Or visit www.niser.org.au
The National Stock Exchange (“NSX”) was the second stock exchange approved under the Corporations Act. The NSX is a fully operational and fully regulated main board stock exchange.