Comvita raises market profile
plans to be one of the first companies to list on the NZX's new
Alternative Exchange (AX) when it opens in August.
Complementary health products maker Comvita New Zealand said it plans to be one of the first companies to list on the NZX's new Alternative Exchange (AX) when it opens in August.
A listing on the new market is expected to lift the company's profile, benefiting investors with an interest in the growth ofnatural health products.
"Listing on the AX will make us more public and give us better access tocapital," said Bill Bracks, chairman of Comvita, who confirmed that Comvita's board has agreed to the new listing as part of the company's continuing growth strategy.
The AX is being developed by the NZX (formerly the NZSE) to facilitate a more cost-effective, flexible public capital raising facility for New Zealand companies.
"If we continue to grow at our historical rate, there will be no problem inaccessing high levels of funding where that is necessary. There will be more share trades and wider shareholdings which will be linked to higher profits. A broader shareholder base will become a strength of the company," he said.
Comvita, which makes natural health products derived from honeybees such as propolis, recently won a Trade New Zealand Export Award.
"As an unlisted company, we feel the AX offers major advantages forComvita. Aside from the obvious advantages of lower costs andstreamlined processes, an AX listing will give us more liquidity," added Bracks. "If we're not the first [company] to list, we'll certainly be the first natural health products company to list."
