Press Release

Last Update: Monday, August 23, 2004. 3:19pm (AEST) Capilano lists on little-known BSX By Natasha Simpson CHRIS CLARK: Another company goes public today - the Betta Electrical group, which has stores along Australia's East Coast. It won't be appearing on the ASX, rather the Newcastle Stock Exchange, one of two little-known rivals to the main market. After operating for a few years, the Newcastle and Bendigo exchanges are slowing building their listings, targeting small and medium-sized enterprises. NATASHA SIMPSON, ABC REPORTER: Capilano Honey has come a long way from its cooperative roots In June the world's biggest honey company listed on Australia's smallest stock exchange - the BSX. ROGER MASTERS, CAPILANO HONEY: It does provide a further opportunity later on if you so desire, to raise capital. And also we know that there is a fair bit of interest in our company from investors who are looking at us perhaps with an eye to the future. NATASHA SIMPSON: Changing corporate regulation and the hunger of small and medium-sized firms for capital are making Australia's secondary boards an attractive option for companies that are too small to list on the ASX. Hi, Ben, how's it going? Good thanks, Doug. What's the market like today? NATASHA SIMPSON: Newcastle Stock Exchange is about to celebrate its first graduate to the ASX but will still have 28 companies worth about $250 million listed. SCOTT EVANS, NEWCASTLE STOCK EXCHANGE: There seems to be and still is, a big gap between ventures capital or seed-style capital, private equity and also the style of capital that's available to companies that list on the ASX. NATASHA SIMPSON: In the past year, the resurrected Bendigo Stock Exchange doubled its listings to 12 and they're thinking big. HARRY PARKINSON, BENDIGO STOCK EXCHANGE: If at some stage in the future we are sufficiently large to take on the ASX, I'd be a happy man. NATASHA SIMPSON: ABN AMRO Morgan's Phillip Leigh helped Capilano on to the Bendigo Exchange. He says the secondary boards are attracting a wide range of investors. PHILIP LEE, ABN AMRO MORGANS: People are attracted because they see that there's a better value in the smaller companies, they see them as being cheaper. But you've often got to look a bit more carefully to make sure that that perception of value isn't confused with the fact that they are smaller companies and they do tend to trade on lower multiples. NATASHA SIMPSON: The small exchanges only average a handful of trades everyday, but for Capilano's original shareholders it's paying of. ROGER MASTERS: It gives a lot more marketability to the shares that those beekeepers own. NATASHA SIMPSON: With the global growth plans, Roger Masters believes a move to the ASX is a distinct possibility for the company created by two beekeeping brothers 50 years ago. Natasha Simpson, ABC News.