NZX chief executive Tim Bennett says demand is looking solid for small and medium-sized sharemarket listings, but a potential downturn in market conditions could affect the environment for initial public offerings in the year ahead.
The Wellington-based exchange operator yesterday posted a 3.8 per cent rise in annual revenue to $65.2 million, driven by strong growth in the company's capital markets business - including 16 sharemarket listings - and funds management division.
Net profit, which rose 8.3 per cent to $13.1 million in the 12 months to December 31, missed analysts' forecasts as employee and professional fee costs rose and the company booked a $1 million provision for a tax settlement with the Inland Revenue Department. NZX shares closed down 4.1 per cent to $1.16.
Bennett said demand for small and mid-sized IPOs was at a similar level to this time last year.
"But there's a lot of water to pass under the bridge," he said. "We're in a somewhat fragile global economic environment, with QE [quantitative easing] going in Europe and Japan and at the same time interest rates will likely rise in the US."
