Press Release

CHEERS . . . Newcastle Stock Exchange`s wine exchange market has proved most palatable with investors. By: Graeme James THE fledgling Newcastle Stock Exchange is widening its horizons following the success of its Australian Wine Exchange trading market. Eight of the 10 securities listed so far are wine companies that have created the world's first niche market for turning cases of wine into shares. Scott Evans, General Manager of the Newcastle Exchange, says the first two years of the exchange's operation have been mainly involved with getting investors aware of its existence. `Anecdotal evidence is showing there are now some big institutional investors as well as smaller investors,` Mr Evans says. The wine exchange market has been a success so far with a third prospectus due out at the end of the month which will add a further seven securities to the trading list. Wine class shares are traded as redeemable preference shares, which carry an entitlement to a case of premium wine from various makers. Mr Evans says one of the main attractions for potential entrants is the less stringent listing requirements for small to medium-sized companies. Listing requirements for the exchange include a market capitalisation of $500,000 and a spread of only 50 shareholders, compared with $10 million and 400 respectively to list on the Australian Stock Exchange. Resource company Pegmont Mines NL and equity investor Winpar Holdings are the only other companies listed on the Newcastle Exchange. `We are also looking at attracting companies in the service sectors including tourism and in property services like project management,` Mr Evans says. The exchange is conducting an innovation open day seminar next month aimed at attracting IT companies. `There are some nice ones that have weathered the IT storm and have been in 'incubators' for the last six to 12 months,` he says. `We are looking at quality companies in that group.` The Newcastle Exchange hopes to break even in about three years, Mr Evans says. “It is a matter of having stamina to be in the (trading) market.”