7 Dec 2009

NZX to issue more shares and raise dividends

9:13 pm on 7 December 2009

NZX is to undergo a share split. The sharemarket operator is also changing its dividend policy.

This will see the number of shares issued quadruple to 123 million.

NZX chief executive Mark Weldon says the spilt was requested by retail shareholders.

The company is also changing its dividend policy, so that the distributable profit is based on operatings earnings, rather than net profit after tax.

It is also guaranteeing that it will increase the dividend by 1 cent per year, for the next five years.

Mr Weldon admits the move is unusual, but says it better reflects the company's financial position.