The National Stock Exchange is hoping the float of a Canadian copper explorer this week will trigger a wave of listings by offshore and smaller companies looking for cheaper local options than the ASX.
Gladiator Metals will become the exchange’s biggest float since Chinese investment firm Juhe Capital floated in August 2016 at a similar valuation when it begins trading on Wednesday with a market capitalisation of nearly $250 million. The miner will retain its primary listing on Toronto’s Venture Exchange, meaning it will also be the NSX’s first Canadian dual-listing.
Gladiator conducted an internal review last year to analyse which Australian exchange would be best suited for its dual-listing and its chief executive Jason Bontempo said it had decided against the ASX because there were substantial costs for compliance and administration.
“The entry barriers and ongoing compliance on the NSX are much more commensurate with venture-stage businesses. I believe there is now a genuine chance to establish and develop a formidable venture exchange in Australia through the NSX,” said Bontempo, whose company has a $C248 million ($250 million) market capitalisation in Canada.
The ASX requires new listings to pass either a profit test – at least $1 million total profit over three years and $500,000 in the latest 12 months – or have at least $4 million net tangible assets or $15 million market capitalisation. A business must also have at least 300 shareholders. By comparison, the NSX’s minimum market capitalisation requirement is just $500,000.