Simple capital raising
Besides providing a central place where new investors can find you, the regulated nature of the Catalist Public Market means you will have the opportunity to publicly raise up to $20 million per year, without needing to complete a ‘regulated offer’. A regulated offer usually involves a product disclosure statement and requirements to register the offer. Not having to complete one could significantly reduce your cost of raising new capital.
Lessened cost and regulatory burden
The Catalist Public Market rules facilitate a lighter regulatory environment for businesses. Other than the cost of the auctions, the impact on your business between auctions has been minimised, so you can concentrate on business as usual.
Simple registry service and investor portal
Our easy registry service and investor portal are included free with all market services. We also offer bespoke registry services for investor groups such as angel groups and funds. Simple user interfaces make information easy to understand and our electronic settlement system applies to all markets, meaning all transactions can be completed through an efficient and paperless process.
Having publicly quoted shares makes it easier to encourage long-term employee commitment, through more attractive employee share schemes. Our online share register makes it easier for both you and your employees to manage and get better value from your employee share scheme.
Customised auction schedule
Your auction schedule can be designed to suit your business. You might hold an auction once a year, after your financial results are available – or you might hold an auction every month, if there is enough demand.
Auctions set an independent and objective valuation for your financial products. This can be useful for various purposes, including the use of quoted financial products to support merger and acquisition transactions.
Providing investors with regular, simple opportunities to trade can make your financial products more attractive, making it easier to complete capital raising. Investors may be willing to pay a premium for financial products, where they know there will be regular opportunities to sell. This liquidity premium can reduce the cost of capital for your business.
Trading events and a regular release of information, through our platform, helps to keep your investors engaged with your business.
Enhanced profile and brand awareness
Listing on a regulated public market and providing regular information updates can increase the status of your business with customers, suppliers and investors. Catalist is also designed to engage with institutional investors, who may provide more capital – and independent research providers have indicated they may provide research on businesses listed with Catalist, which can make businesses more attractive to professional investors.
Businesses listed on the Catalist Public Market will have the advantage of a number of tax-related benefits, including the ability to set up listed Portfolio Investment Entities (PIE). Trading restrictions can also be implemented if you need to protect shareholder continuity.
Release of capital
Auctions give early stage investors and founders an opportunity to release some of their capital and can help facilitate a sell-down and managed transition of the business to new owners.
Steppingstone to an IPO
Our aim is to help businesses grow. We will work with equity issuers that achieve a market capitalisation of NZD $100 million, to see whether they would benefit from transitioning to a more traditional stock exchange, such as the NZX and/or the ASX.