Some NZAX-listed firms will move on to NXT - Esquires franchisor Cooks Global Foods has already flagged plans to do this - while those with a market capitalisation of more than $100 million could go directly to the NZX main board.
At present, only fast food operator BurgerFuel, with a valuation of $209 million yesterday, fits the bill in that regard.
But question marks are hanging over the NZAX's smaller players.
Eight of its 20 issuers have market capitalisations well below $10 million.
Orion Minerals Group and Windflow Technology, for example, were yesterday worth $829,000 and $1.7 million, respectively.
NZX's Aaron Jenkins, who led the development of the new market, said some NZAX companies will "decide that public markets aren't for them because they never reached a sufficient scale".
A big rise in fees might speed up that process.
NZX reportedly informed NZAX issuers this week that those with less than $15 million market capitalisation will cop an almost five-fold increase in their annual fees, from $5375 to $25,000, from July 1.
An NZX spokeswoman said the fee structure was set some years ago and had been designed to encourage listings.
"These fees are now out of line with our other markets."
Fresh start
To be successful, NXT is going to have to attract high-quality firms that investors can get excited about.
No one wants to see it going the same way as the NZAX and numerous measures have been put in place to avoid that fate.
These include NZX funding Edison Research to publish reports on NXT-listed firms, which aims to overcome a lack of analyst coverage suffered by most small cap companies in New Zealand.
Broker First NZ Capital, acting in its "market maker" function, will also post buy and sell prices for NXT stocks each day to promote liquidity.
And a simplified set of listing rules has been tailored to suit small, fast-growing businesses, while (hopefully) safeguarding the interests of investors at the same time.
Tim Preston, of NXT adviser CM Partners, said the problem with the NZAX was that it was simply a "mini-version" of the main board.
"NXT is going to provide a good avenue for companies to price their equity and get a foot in the door in the public markets," he said.
Preston said companies from a wide range of sectors, from agriculture to technology, were interested in listing on NXT.
At least three to four more listings should take place on the new market this year, he added.
Buying opportunity?
Air New Zealand shares were savaged yesterday after Jetstar revealed plans to beef up its domestic operations in New Zealand. The national carrier's stock slumped to a seven-month low, closing down 9.6 per cent at $2.39 last night.
The shares also came under pressure last week following news of potential competition from American Airlines on its lucrative direct routes to the United States.
Air New Zealand has had an effective monopoly on flying directly across the Pacific to the US since Qantas withdrew from its loss-making Auckland-Los Angeles route in 2012.
Increased domestic competition is obviously a concern for investors, but Air New Zealand remains on track to deliver a strong full-year result.
Yesterday's sell-off could well have been an over-reaction.
Kathmandu stock loses its puff
With all this talk of puffer jackets you'd think Kathmandu would be creaming it.
But as Motueka High School students bemoaned a ban on their beloved wearable sleeping bags this week, shares in the outdoor apparel seller have been languishing quietly. The stock equalled its lowest ever closing price of $1.27 last night. That's a 68 per cent decline on the record $4 close on May 7 last year.
Kathmandu hasn't reported any price sensitive information since posting its half-year result on March 24.
That included a net loss of $1.8 million compared with a $11.4 million profit in the same period a year earlier.
Aggressive discounting and disappointing trading over the Christmas period contributed to the poor result.
However, a reasonably cold start to winter could bode well for the retailer this year.
