"At the moment the market seems positive, although we've had a massive pull-back in the tech sector over the past few weeks," says Cunningham. "That's paused the market. Some valuations may be getting a little stuck at the moment.
While there's a range of different companies, the pipeline is strong in two sectors: technology and life sciences. And it is not in conflict with anything the NZX is doing.
"People who have good, long-term plans to go public probably aren't being impacted.
We've seen very few deals pulled. And I get the sense the pipeline is being smoothed a little. Our view for tech and for New Zealand in the mix is slightly more positive than it was a year ago."
There's also been a mini-boom in parts of the New Zealand economy. Cunningham says those in online retail, or in tech in general, are now doing better numbers than they were expecting at the start of the year. "We've never been more optimistic about the opportunities for us in the New Zealand market.
"We've got great engagement from the technology sector.
"We've had a few more Kiwi companies make it into the various indices. As far as work in New Zealand is concerned, we were most excited that Auckland International Airport made it into the ASX 200 index. Then, during the December rebalance, Xero went into the top 50."
This is important because when a company moves up a class in the index that usually means a lot more liquidity for the underlying stock. It puts them in touch with a broader range of investors and more independent research coverage.
ASX senior New Zealand manager Blair Harrison says there are 63 New Zealand companies listed on the Australian exchange.
This will hit 64 with Simon Henry's Dangerous Goods Logistics listing earlier this week. It's a trans-Tasman business and will be a primary ASX listing.
Says Harrison: "The pipeline is a healthy mix of companies looking to dual list. Some will be primary ASX, others will be primary NZX. While there's a range of different companies, the pipeline is strong in two sectors: technology and life sciences. And it is not in conflict with anything the NZX is doing. We see the two exchanges as complimentary.
"There's been an acceleration in the adoption of technology over the last year and the New Zealand companies are benefiting from that. We're providing a valid and interesting path for their growth. They can raise capital on the ASX. It's nearby. It's a similar jurisdiction and they are able to stay local while accessing Australian and international capital markets."
Harrison sees huge potential for New Zealand life sciences companies.
We've never been more optimistic about the opportunities for us in the New Zealand market. We've got great engagement from the technology sector.'
He says exciting innovation is coming out of New Zealand universities, although they may be some time before going to market.
Things developed fast in the last year because of the pandemic. In some cases, they developed as a response to the pandemic.
"The big question right now is the future ownership of the Kiwi trading banks. We don't have a lot of insight into what's happening there, but we understand they are thinking about what they need to do to get into one of the ASX benchmark indexes."
Getting on to an ASX index is not a given. Cunningham says it depends on two factors. First, the free flow, that is how much do the Australian parents sell down by. Second, there is a question of how much of the liquidity is on the ASX. Because S&P handles the indices in Australia and New Zealand, it can't double-count.
When they take place the bank deals are likely to be so large that they will need trans-Tasman support.
Cunningham says the ASX's goal is to be complementary to the NZX. "It wouldn't be prudent for us to be pitching for those to be sole listings. There's a certain inherent logic for these things to be listed in their home market."
Private investment is always a nagging background issue for exchanges like the ASX. Cunningham says the smoothness and ease of a trade sale is a well-trodden path for entrepreneurs. "It's a quick payday. If a founder wants to exit, it may be the best path.
The guys who do well, like Rod Drury, who take companies public, have a vision to run them for five years. That's a win for the founder, it's a win for existing shareholders and it's a win for the new shareholder.
"We're a business. Of course, we'd like more companies to list rather than go private. But the problem in Australia and New Zealand is that these companies are not going private in the private equity sense, where they are likely to come back to the market three or so years later. Most of these companies are a one-way ticket to Silicon Valley and are never seen again."
Harrison says many founders of New Zealand technology and life sciences companies choose not to take that path. They have valuable IP and want to grow something here.
"An IPO strategy allows them to retain that IP and keep their organisation's cultural identity. If they get acquired, often that all of that is lost. Xero is a good example. The company still maintains a cultural identity as a New Zealand company. That goes through to people like managing director Craig Hudson. He does an enormous amount of good work domestically and offshore, that reflects Xero's cultural values as a company".
He points to Stephen Newman's ERoad: "It was one of the joint listings last year on the ASX and the NZX. It's a great company with a great presence in New Zealand now building an office out in Albany. It has a culture Newman is keen to preserve."
