Press Release

Newcastle Stock Exchange (NSX), established in 1937, has big growth plans after a successful initial public offering and an Australian Stock Exchange listing next week. NSX raised $12 million in its float, selling 24 million shares at 50 cents each, mainly to institutional investors. Chief executive Michael Cox said the company was negotiating a takeover of the smaller Bendigo Stock Exchange, subject to regulatory approval. NSX has 28 listed companies operating on its exchange, mainly in the industrial and resources sectors, and Mr Cox said there are seven more listings in the pipeline. "We expect to grow significantly from here," Mr Cox said. "Ultimately we will reach a point where we have sufficient listings to become self generating." He said if NSX acquired the Bendigo exchange, Bendigo would continue to operate independently. It's proposed the acquisition will be in exchange for 10 million NSX shares. "We will look to transfer some of (Bendigo's) companies to the NSX but groups like the Bendigo community banks, for instance, would be an inappropriate listing for NSX," Mr Cox said. "We will differentiate between the two markets." Mr Cox said the NSX fell dormant after World War II but was "reactivated" in 2000 to provide companies seeking a platform for trading their securities with a viable alternative to the ASX. The company, which made a $270,000 loss last financial year, has not made a forecast in its prospectus and does not anticipate paying a dividend in its first 12 months on the ASX. "We are still very much in the growing phase," Mr Cox said. "The listing allows us to have the resources to put in facilities as we grow." Chairman Ray Whitten told potential shareholders in the company's prospectus that the equity market was undergoing a growth period with excellent opportunities for a secondary securities exchange. He said the money raised will provide working capital to expand market awareness, invest in technology, accommodate market growth as well as pay back $240,000 in debt. The prospectus said NSX believes companies will want to list on its exchange even if there is a downturn in conditions, because the NSX provides a market to raise smaller amounts of capital than the ASX.