21 Feb 2014

IPOs, more trading boost NZX profit

7:01 pm on 21 February 2014

A record number of initial public offerings (IPOs) and more equity trading activity last year helped bolster the stock exchange operator's full-year net profit by nearly 23 percent.

The NZX has reported a net profit of $12.1 million to nearly $63 million in the year to December, compared with $9.9 million in 2012.

NZX chief executive Tim Bennett said the new listings included a broad range of company sizes and industry sectors.

"The capital markets businesses, so the operation of the market new listings, were significantly ahead of the prior year, and that was on the back of new capital issued of $7.5 billion - we had 10 IPOs," he said.

"We also had a significant increase in trading activity. The value traded was up 40 percent, the number of trades up 32 percent, so all of that combined drove a pretty significant increase in revenues."

Mr Bennett said he could see another good year ahead, with lots of companies in the IPO pipeline and continued strong trading activity.

The NZX will pay a full-year dividend of 1.6c a share, up from 1.25c last year.