NZX capital raising hits $1.46 bln in July as cash trading slows

Monday 5th August 2013

NZX-listed issuers raised almost $1.46 billion last month, including Ebos Group's $149 million rights issue to fund its Symbion acquisition, the most in a month since December, though cash trading continued to slow after a flurry of activity at the start of the year.

Listed company raised some $954 million in primary equity and $504 million in dual and secondary equity across 17 events in July, taking total capital raised this year to $2.34 billion, according to NZX monthly metrics. Some $500 million of new capital was listed in July, with $4.3 billion added this year.

The market capitalisation of all equity was $76.5 billion, or about 36 percent of gross domestic product, as at July 31, some 29 percent more than a year earlier. Debt market capitalization was $13.6 billion, or 6.4 percent of GDP, down 10 percent from a year earlier.

The benchmark NZX 50 index rose 2.2 percent in July to close the month at 4,537.985. It closed last Friday at 4,582.891.

The stock market has attracted renewed interest with the government's partial privatisation programme kicking off with MRP in May, and Meridian Energy slated for a listing later this year. That's also stoked private companies to go public, with Synlait Milk joining the bourse last month, and Z Energy set to list this month.

Cash trading continued to slow in July, with 93,780 trades for a total value of $2.6 billion, or $111 million a day. While up 35 percent in volume terms and 12 percent in value terms from a year earlier, it was down from $2.7 billion of trades for a daily average of $141 million in June.

BusinessDesk.co.nz

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