NZX raises fees for companies raising capital by 35 per cent

Sharemarket operator NZX is bumping up the fees it charges for firms raising capital by about 35 per cent.

It said yesterday the fee increase would not apply to initial public offerings, only subsequent capital raising. The increases come as NZX introduces price changes, rebates and new services for data distributors, market participants and listed issuers.

A spokesman for NZX declined to say what impact the changes would have on its revenue stream. However, the fee for raising $500,000 would rise by $334, or 35.3 per cent, to $1278, while the fee for raising $25 million would rise by $2755, or 34.8 per cent, to $10,670.

Annual fees paid by listed issuers of equity would rise by 10 per cent.

For a top-50 company with a market capitalisation of about $200 million the increase translates to a change from $19,650 to $21,700.

Listed companies will now receive 10 hours of regulatory service from the NZX at no charge. After that, the hourly rate is $250.

NZX head of finance and strategy Carl Daucher said the free hours were potentially worth $25,000 to a company with a market capitalisation of $200 million and effectively reduced its total fee payment. Similar decreases in fees would benefit 64 per cent of listed companies.

Also, NZX said it would provide all listed issuers free access to its online database i-Search.

The new price schedule also contained a 66 per cent reduction in the fees for retail and non-professional users accessing real time information.

This was aimed at encouraging the development of data products targeting retail investors.

Other increases included the trade value charge for each equity trade, which would rise from 0.15 basis points to 0.20 basis points, capped at $20 for each trade.

Market participants could also earn a fee rebate of up 100 per cent on price incentive trades.

Meanwhile, listing fees for companies on NZX's alternative exchange with a capitalisation of less than $15 million would remain unchanged at $7500 a year.

Former Listed Companies Association chairman John Blair said: "I can't think of too many businesses that would get away with those levels of increase in one jump."

ABN Amro Craigs executive chairman Neil Craig said institutional brokers were more likely to feel the impact than retail brokers because the charges related to the value of trades as opposed to the number of trades.