The New Zealand Stock Exchange wants to know whether there are any rules it can change to encourage special purpose acquisition companies (SPACs) or founder-led growth firms, as it reviews its settings to raise money on its platform.  

The NZX stock market operator is seeking feedback to see whether its listing rules are still working as intended, and also to help stoke new listings, which have been scarce in recent years. 

Among the NZX's queries are whether there are ways to promote alternative avenues for firms to list, such as through a SPAC shell company, which has been a favoured method of going public in the US, as done by NZ-founded space agency Rocket Lab. 

The NZX's consultation paper said SPAC listings are possible in NZ, but there hasn't been strong demand from promoters for such vehicles. 

"However, given the prevalence in other markets, we seek feedback on whether NZX should introduce specific investor protections to facilitate such listings if there is demand in future," it said.

The paper also seeks feedback on whether to set up a regime catering to dual-class shares, which are often favoured by founder-led, high-growth firms who can retain control by holding stock with more voting rights.  

NZX chief executive Mark Peterson said temporary adjustments to the rule settings have been in place since 2018 and the targeted review followed a period of “heightened capital raising activity” due to the effects of covid-19 on the market.

He said the NZX was “aware of some differences” in its capital-raise settings compared to other markets and it was important to ensure their rules were “comparable”. 

“In light of this, it’s an appropriate time to conduct a targeted review of NZX’s capital raising settings,” Peterson said.

A key question raised in the consultation paper is whether to allow accelerated non-renounceable entitlement offers to align with the ASX's dilution limits, which were popular methods to raise funds during covid, during NZ RegCo's temporary relief period. 

Peterson said the NZX had been engaging closely with the market as it prepared for the consultation and wanted “extensive” feedback. 

The NZX is also seeking feedback on whether to enhance existing shareholder protections, and to allow greater flexibility within thresholds for share purchase plans to support retail participation in offers.