Ross Verry, Syndex CEO and Sarah Minhinnick Head of Issuer relationships for NZX talked through private market investing and public listing as solutions for acquiring capital in a webinar (Oct 29th, 2020).
This is a summary. Click below to view the full recorded session.
What’s the value you see in the Syndex/NZX partnership?
There are great possibilities in presenting jointly to companies, to offer a range of capital raising options. It’s important to match capital to company goals and make appropriate pathways, whether that involves a migration to the public markets or not. The partnerships will allow a wider range of capital solutions that suit different businesses, at different stages of the business cycle.
How does Syndex help businesses transition from private to public markets?
Syndex brings public market tradeability (liquidity, disclosure, transparency) to the private sector, which attracts new investors and access to a wider pool of capital. A business trading with Syndex gets to ‘practice’ being a public company, by learning and experiencing disclosure reporting and knowing what investors require in terms of information and communication. This smooths the transition to the public markets if that’s the chosen path.
When is the best time for a business to list with NZX?
A number of key indicators of success are considered in a listing timeline. These can include growth rate, market position, competitive advantage, long term outlook, management team experience, good accounting/financial practices, and the ability to cope in the listed environment. These aren’t prerequisites to starting a conversation with NZX though, as they can give support and advice in these areas. Early conversations about intentions to list a company are welcomed.
What advice would you give to raisers to avoid common errors?
Sarah (Public listings):
- Keep a clear, consistent message.
- Retain flexibility in your timeline; have the ability to pause and ride out times of market volatility.
- Avoid volatile periods such as US election dates.
Ross (Private listings):
- Don’t try to do it all yourself; utilise the skills of advisers. The process is time-consuming and it can become a distraction to running and growing your business.
- Do due diligence on potential investors. Know their expectations, motivations and values - as well as skills that they could offer.
- Know the difference between your role as management and the role of the governing board of investors. As management, you retain the ability to make quick decisions.
Who should you bring into your team for help?
- Financial and legal advisers - for valuations, legal work, audited accounts etc.
- Investor relations/PR
- Board of directors - a requirement for public trading
- NZX - are used to long-running conversations and no charges apply until listing. They can point you towards resources or offer contacts for the roles mentioned above.
- Syndex - as no two capital raises are the same Syndex welcome inquiries, and can offer contacts for advisers and intermediaries.
To start a conversation please contact:
Sarah - Sarah.firstname.lastname@example.org
Ross - Ross.email@example.com
To view the webinar in full: