NZ IPO Market Under the Spotlight IPOs went into a deep freeze during 1H20 on fears of global recession amidst the pandemic.
Interestingly, the IPO market has started to gather momentum now. Major catalysts of the improved IPO related activities are rebounding equities, improving investors’ sentiments on economic recovery hopes and fast-tracked vaccine development.
NZ IPO Revival New Zealand's equity market is showing signs of revival.
Besides, NZ companies' attempts to engage with their investor universe has been improving.
* 2020 IPOs In March 2020, health and wellness brand ‘Me Today Limited’ emerged as New Zealand’s first NZX equity issuer listing in 2020 under a ‘reverse listing transaction’, after raising $1.5m growth capital. Recently, medicinal cannabis company ‘Rua Bioscience’ debuted on the NZX at 70 cents a share, after a successful IPO raise of $20 million. The debut marked 40% premium to the issue price.
* Trends To Watch Out For Improved IPO activity can be expected in the medium to long term as the economy recovers. More take-private transactions can be expected as several listed companies are trading quite significantly below NTA per security.