For businesses

What is Catalist?

The simplest way for investors and businesses to connect and grow

Catalist will be New Zealand’s only licensed* and regulated stock exchange designed for small and medium-sized businesses, to catalyse growth by providing access to investors.

Our secure online platform not only makes it easier for your business to raise capital and manage your investors, but also for your investors to keep track of and trade their investments.

What we offer

Catalist Public market

The Catalist Public Market acts like a traditional stock market, but designed specifically for small and medium-sized businesses. This means that rather than continuous trading, Catalist uses regular auctions, which can help to lessen the cost and regulatory burden for your business.

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Catalist Private Markets

The Catalist Private Markets are a service where your business uses our platform to run your own market, which is only accessible by your private investors.

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Registry Service

Our registry service is an online investor management platform to simplify the tracking and management of investors and investments.

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Why list ?

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.

Employee incentivisation

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.

Objective valuation

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.

Investor liquidity

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.

Investor engagement

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.

Tax benefits

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.

How does it work?

The public listing process

1

Expression of interest

Send us an email and we'll get in touch to discuss your options and the ways listing on Catalist could benefit your business

2

Due diligence and preparation of Information Memorandum

We will walk you through the application process and provide guidance on how to prepare your Information Memorandum, however, we recommend you have support from your professional advisers such as lawyers or accountants. We can help put you in touch with appropriate advisers, if you need.

3

Compliance checks

Like any regulated financial business, we will request certain information about your business and documentation to verify your identity and the beneficial ownership of your business. When we are satisfied with the information received, and you have shown you will be able to comply with our Issuer Rules, we can list your business on the market.

4

Marketing

Your business is encouraged to conduct marketing of your financial products in order to help increase awareness of your auction(s) and the success of your capital raise. We can arrange packaged services from partner service providers who will be able to help you with your marketing plan, if needed.

5

Auction

Auctions are held periodically, in accordance with an agreed schedule. Each auction is open for investors to submit bids and offers for an agreed length of time. After each auction, payments are settled and transfers of shares are completed electronically.

Auctions

Unlike a traditional stock exchange that trades continuously, on Catalist, all trading is conducted through simple periodic auctions. This is because auctions have been shown to be the fairest mechanism for pricing financial products that do not continuously trade.

Auctions can either set a fixed price for financial products (commonly used for capital raising) or a variable price set by supply and demand (commonly used for secondary market trading). During each variable price auction, investors will see the expected price of your financial products in real time, based on the total supply and demand from buyers and sellers. When the auction closes, all buyers and sellers pay or receive the same fair price for your financial products.

Bids and offers from investors and sellers are given priority based on their competitiveness and the time they were submitted.

Auctions can be purely for capital raising purposes, where your business is selling additional financial products to investors, or they can be for investors to trade existing financial products between themselves – or they can be both at the same time.

If you’d like to know more about auctions, have a read of our page on how auctions work.

Interested in listing?

Think you might be interested in listing with Catalist? Fill out your details below and we’ll get in contact to discuss your options.

In the meantime, you can take a look at some additional information, such as our Issuer Rules and Terms & Conditions.

*All services are subject to terms and conditions. Public trading is subject to licence, which is pending. Further information is available on request.