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Stock exchange operator NZX said total capital raised hit a record $5.5 billion last year, up from $4.2 billion a year earlier.
The capital, raised by new and existing issuers, was roughly half equity and debt.
The handful of initial public offerings has been disappointing, compared with Australia's 100.
However, listed companies such as Rakon, Fletcher Building, Goodman Property Trust and Methven had raised significant capital to fund growth and acquisitions, NZX markets development manager Geoff Brown said.
"The listings pipeline is looking strong for 2008. With more listings, a better trading environment for existing NZX listed issuers, and a broader range of equity, debt and derivative products available, we expect an increase in average daily trade numbers in 2008 and beyond," Mr Brown said.
Average daily trades were up 6 per cent for the year, at 2478.
The NZX's markets were effectively downgraded late last year by international share index compilers MSCI, and its performance was ranked among the world's 10 worst during 2007 by fund researcher Lipper.
The NZX is expecting activity to improve this year with the flow-on effects of KiwiSaver and tax changes on investments. In the second half of 2008, new market products with the potential to trade would include commodity derivatives and carbon, following a system upgrade.
The NZDX market -- featuring fixed income, corporate and government securities -- grew to a market capitalisation of $10.4b at the end of 2007, from $8.5b at the start of the year.
"We have seen an increase in the size of the NZDX market, the number of investment grade products available and in appetite from investors for fixed interest market products," Mr Brown said.
NZX shares rose to $8.90 by the end of December, from $6.68 a year earlier.
- NZPA
