Celebrating 5 years of ASX setting up in New Zealand

Wed 13 November 2024
6 MIN READ

Alexandra Cain

Freelance Finance Journalist

ASX first opened a New Zealand office in June 2019 and have hit many milestones in the five years since.

June 2024 marked five years since ASX opened an office in New Zealand. Over that time, 16 New Zealand companies have listed on ASX raising over $1.26 billion in growth capital and with a combined market cap of over $7 billion. In addition, New Zealand companies listed on ASX raised over $8.7 billion in follow-on capital during that same period.

While the team have always had a regular presence in New Zealand, opening a local office has strengthened the relationship between ASX and NZ companies, enabling the Listings team to support the ecosystem of start-ups, scale-ups and flourishing businesses across a range of industries.

Blair Harrison, Head of NZ Listings at ASX and Kiwi local, has had a permanent presence on the ground in Auckland since moving home in June 2019 to open the NZ office. Reflecting on this, Harrison says “In the past five years, we have experienced one of the most volatile periods in the economy and markets in recent New Zealand history with COVID lockdowns and border closures, a post-COVID boom, followed by the Ukraine war, high interest rates and an economic slowdown. Through these challenges, I am very proud to have represented and to continue to represent ASX in New Zealand, as ASX has provided a platform to New Zealand companies to access capital in record volumes during this period”.

Capital, liquidity and index inclusion just the tip of the iceberg

New Zealand companies are now, more than ever, looking at ASX as either their sole listing or as a secondary listing to their primary NZX listing. Being listed on ASX provides these companies with access to a deep pool of capital and Australia’s $3.9 trillion super funds, much of which is invested in ASX-listed businesses (and much of which is not accessible to NZX only listed companies).

Liquidity and inclusion into globally recognised indices are also prompting more Kiwi businesses to expand their capital plans to include a listing on ASX. Additionally, more targeted, specialist research coverage, growth funding, a stepping stone to global markets and the opportunity to test new products.

Kiwi ingenuity

There is a procession of companies born in New Zealand displaying famous Kiwi ingenuity for which ASX is proud to be an important conduit to capital. Neuren Pharmaceuticals, Xero, and Volpara Health are some great examples of this, but perhaps none have more of a Kiwi story than Aroa Biosurgery. Aroa is a company which reconstitutes sheep stomachs, a by-product of New Zealand’s famed lamb and wool industry, and sells medical and surgical products to improve healing in complex wounds and soft tissue reconstruction to medical institutions across the United States.

As ASX gets ready to list more New Zealand businesses in 2025, Kiwi ASX success stories were asked to reflect on what an ASX listing means to them.

Brian Ward, Founder and CEO - Arora at AROA's listing ceremony in 2021

Brian Ward, founder and CEO, AROA Biosurgery (ASX:ARX)

“The greatest benefit to listing has been access to capital to fund and accelerate growth. Additional capital has enabled AROA to invest in expanding commercial operations in the US, ongoing investment in research and development and increasing manufacturing capacity. These are all key strategic initiatives in building a long-term, successful and sustainable soft tissue regeneration business,” says Ward.

For companies considering listing, Ward says it’s important to have a track record of growth and a compelling investment proposition. “You should also ensure the company is well prepared for the listing process and that you maintain flexibility on the listing window.”

Andrew Dixson, CEO, Heartland Group Holdings (ASX:HGH)

“Listing on ASX under a foreign exempt listing in 2018 was a deliberate part of Heartland’s strategy to expand into Australia by increasing the capital sources available to us. We still have a lot of work to do to grow our Australian registry, but we’re pleased with the access to capital it has enabled so far,” says Dixson.

Since listing, Heartland’s Australian business has grown significantly through the acquisition of specialist livestock finance provider StockCo Australia in May 2022, followed by the acquisition of and Challenger Bank in April 2024.

“Both acquisitions were enabled by equity raises that received good support from Australian investors and were critical milestones towards delivering our best or only specialist banking proposition to Australians,” says Dixson.

Geoff Ricketts, former Chairman, Heartland listing ceremony in 2019

Catherine McKelvey, CFO, Echelon (formerly New Zealand Oil & Gas) (ASX:ECH)

“Echelon’s consolidation on ASX brings significant strategic advantages, especially as the majority of our assets are based in Australia. ASX provides a dynamic and efficient platform for trading our shares, offering greater visibility among investors familiar with our industry, allowing for a more accurate valuation of Echelon’s assets. The consolidation of our listing on ASX has lowered our administrative costs and we anticipate ASX’s larger capital base and comparable companies will position us for long-term success,” says Catherine McKelvey, CFO, Echelon.

McKelvey says it’s essential to align with the investor landscape for a listing to be successful. “ASX is particularly advantageous for companies with assets or operations in Australia, or in sectors with a strong local presence. Having access to a larger, more diverse pool of investors familiar with your industry provides significant long-term benefits.”

Amir Ansari, manager – strategy and development and company secretary, Tourism Holdings Rentals (ASX:THL)

“In December 2022, Tourism Holdings dual listed on ASX alongside the merger with ASX-listed Apollo Tourism and Leisure. The merger and dual listing resulted in two new Australian brokers covering THL, greatly increasing our visibility among Australian investors,” says Ansari.

A number of institutional investors without a mandate to invest in non-ASX listed companies joined THL’s share register as shareholders.

“Our ASX listing means we can take part in retail investor engagement events like the ASX CEO Connect conference. We encourage companies dual listing on ASX to put together an investor relations strategy to maximise the opportunity to increase investor and market awareness about the company on listing,” Ansari says.

Left to right: Blair Harrison, Head of NZ Listings - ASX, Nick Judd, CFO at the time, Amir Ansari, Manager – Strategy & Development; Company Secretary and Grant Webster, CEO - THL at the THL listing ceremony in 2022

Gerry Zhao, vice president, corporate development, Neuren Pharmaceuticals (ASX:NEU)

“Neuren is developing new therapies for serious neurological disorders that emerge in early childhood. In March 2023, DAYBUE™(trofinetide) became the world’s first and only treatment of Rett syndrome approved by the US Food and Drug Administration,” says Gerry Zhao, vice president, corporate development, Neuren Pharmaceuticals.

Strong cashflows from DAYBUE are enabling Neuren to advance NNZ-2591 to treat multiple disorders.

“Listing on ASX as a New Zealand company has given us access to a larger and more diverse pool of capital and the associated financial community benefits. This has enabled Neuren to raise a total of $175 million in equity to fund its R&D, supported by local and international investors. An ASX listing has enhanced Neuren’s global profile when exploring commercial partnerships,” says Zhao.

Craig Hadfield, chief customer and financial officer, Volpara Health

“Being listed on ASX allowed Volpara to quickly raise capital at scale, enabling us to rapidly grow our operations globally. It raises awareness of our mission to save families from cancer by providing a platform to share our story,” says Hadfield.

For any company considering an ASX listing, Hadfield says it’s crucial to have a strong, experienced management team and board. A clear business plan and a well-defined growth strategy are also essential.

“Understanding which exchange best suits your business, including investor and customer demographics, is key. Most importantly, prioritise what is best for your business, while considering diverse perspectives and advice,” says Hadfield.

Nicole Mehalski, executive general manager, investor relations, Xero (ASX:XRO)

“Our experience as a non-Australian company on the ASX has been positive, but it’s important each company's individual circumstances and strategy are the drivers of their decision to list. We set a range of objectives,” says Mehalski. “These include access to a larger range of investors and increased liquidity.”

Xero, originally NZX and ASX listed, consolidated their listing on ASX in February 2018, which although controversial in New Zealand at the time, propelled Xero into the S&P/ASX100. Xero now sits proudly in the S&P/ASX50 and the S&P/ASX All Technology index.

Rod Drury, Founder - Xero at a luncheon at ASX in 2018

“The ASX offers a relatively deep market for trading shares, broadening the appeal and accessibility of ASX-listed companies", says Mehalski, explaining broader analyst and broker coverage is another benefit. 

ASX looks forward to continuing to support the New Zealand eco-system of companies and thanks all who have been a part of the evolution since the office opening in 2019.