Press Release

Newcastle Stock Exchange now has to justify the expectations placed on it after investors clamoured for shares on its debut on the Australian Stock Exchange, chief executive Michael Cox says. Shares in NSX were sold at 50 cents each in its initial public offering, mainly to institutional investors, raising $12 million. NSX debuted at 74 cents and soared as high as 92 cents before closing its first day at 86 cents or 72 per cent above its listing price with almost five shares changing hands. "It's been a good day for the investors," Mr Cox said. "What it means is that we now have to justify the growth (the share market sees in NSX). "But sometimes you don't want the market to put too big a hurdle too quickly on you." The NSX raised $12 million in its float, with institutional investors buying the majority of shares. Mr Cox said the company is in negotiations to acquire the smaller Bendigo Stock Exchange (BSX), subject to regulatory approval. NSXhas 28 listed companies operating on its exchange, mainly in the industrial and resources sectors, with a further seven in the pipeline. "The whole process of raising the profile of the exchange by listing on the ASX has worked," Mr Cox said. "We've had more applications to join our stock exchange already." He said the next three months will be spent smoothing the way for the merger with the Bendigo Stock Exchange (BSX). "Our priorities are to complete the merger with the Bendigo Exchange and integrate that and continue to develop the number of listings we have." NSX plans to transfer some of Bendigo's companies to its own exchange but groups like the Bendigo community banks would remain on the local exchange. 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 recorded 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.