AX market set for August start

By ELLEN READ

August has been chosen to kick off the Stock Exchange's AX market.

The new market will be a vehicle for growth companies and businesses with alternative structures, such as agricultural co-operatives. User groups are being set up to refine the design and structure of the board.

Exchange market development manager Geoff Brown said: "We want to create a platform that encourages new listings and increases liquidity in the market."

The groups will include representatives from listed and unlisted companies, the Government, the broking community, accountants, banks, lawyers and information providers.

They will be asked to consider:

* The legal and regulatory environment.

* The company sponsor role and the distribution process.

* Research and information sources.

* The trading microstructure of the market.

* Non-standard listings.

* Unlisted and potentially listed companies.

Brown said once the proposal had been finalised - preferably by the end of April - discussions would begin with companies about making the transition to the AX board.

Candidates include companies on the soon-to-be defunct New Capital Market and unlisted boards, as well as smaller companies on the main board.

He has selected up to 100 contenders, spread across three places: nearly 60 on the unlisted securities market; an estimated 30 in the lower reaches of the main board, with market capitalisations under $30 million; and a handful on the dying New Capital Market.

* Email Geoff Brown

For the proposal, go to nzse