The National Stock Exchange of Australia (NSX), Australia’s second largest equities trading exchange and the market of choice for growth-style listed companies, will look to open an office in Western Australia following completion of a share placement of up to $10 million.
The placement, which is to be led by WA corporate advisor CPS Capital Group, is set to support the technological and marketing activities of the exchange, improving the effectiveness of its liquidity bolstering moves.
Under the terms of the placement, the NSX is set to issue up to 50 million shares at an issue price of $0.20 per share. The issue of shares is subject to shareholder approval with a general meeting to be held in May or June this year.
The NSX believes the Western Australian market is an ideal location, home to many companies which would be suited to an NSX primary listing.
In addition to geographic expansion, the bourse has been active on the technology front undertaking a handful of upgrades to create a surge of trading on its platform.
The NSX recently appointed SecuritEase to provide connectivity to the Australian Trade Acceptance Service, which allows trades executed on the NSX to be cleared and settled by the ASX on the same basis as trading which originates from the ASX platform.
The SecuritEase System is a real time multi-currency, multi-market and multi-company back office settlement and clearing system that has an established track record of seamless processing for the New Zealand bourse, the NZX.
The addition of SecuritEase further boosts the ease of trading on the NSX.
Last year the NSX also inked a deal with software provider IRESS, permitting IRESS clients to trade securities listed on the exchange. The move led to the NSX further welcoming respected financial services groups State One Stockbroking and Ord Minnett as market participants trading on the platform.
Commenting on the placement, managing director and CEO of the NSX Ann Bowering said:
“NSX is committed to providing companies with more opportunities to list. This raising presents an opportunity for key market stakeholders to engage in the growth opportunities on the horizon for NSX, and share in the future success.
“The net proceeds from this Placement will be used to further enhance market connectivity to the exchange, creating greater liquidity in our market, and to continue our extensive work on operational enhancements.
“Importantly, this investment will also fund business development activities in key markets such as Western Australia, where there is increasing demand for an alternative IPO and listing exchange, and NSX is ideally positioned to meet this demand.”
The NSX is the primary destination for over 80 securities, boasting a combined market capitalisation of approximately AUD $4.6 billion.