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 sell their investments.
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.
Investors can buy and sell your financial products, such as shares or debt securities, by participating in your online auctions.
Your online auctions can be completely public and open to all registered investors, or you have the ability to restrict the types of investors who can participate in your auctions. Your business might choose to exclude your competitors or restrict auctions to wholesale investors only, for example.
The Catalist Public Market will be licensed* under the Financial Markets Conduct Act 2013, which will enable you to raise up to $20 million per year in capital from all types of investors.
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. This allows your business to simply manage any trading of your financial products through private auctions, with settlement completed electronically.
The private markets can have flexible rules, suited to your business, and are not subject to the same rules and regulations as our public market.
We also have an online investor management platform to simplify the tracking and management of investors and investments.
The platform completes transfers electronically, records a full chain of ownership for financial products and helps to securely manage any information updates from you to your investors.
Our secure investor accounts let your investors keep their contact details up to date, view their investment portfolio online and access any information you release to them.
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
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.
Trading events and a regular release of information, through our platform, helps to keep your investors engaged with your business.
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.
Having publicly quoted shares makes it easier to encourage long-term employee commitment, through more attractive employee share schemes. Our online shares register makes it easier for both you and your employees to manage and get better value from your employee share scheme.
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.
Businesses listed on the Catalist Public Market will have the advantage of a number of tax-related benefits, including how investments are treated under the shareholder continuity rules. Trading restrictions can also be implemented if you need to protect shareholder continuity.
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.
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.
Send us an email and we’ll get in touch to discuss your options and the ways listing on Catalist could benefit your business.
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.
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.
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.
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.
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.
During each auction, investors will see the expected price of your 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.
Think you might be interested in listing with Catalist? Fill out your details below and we’ll get in contact to discuss your options.
*All services are subject to terms and conditions. Public trading is subject to licence, which is pending. Further information is available on request.