On Wednesday June 17, some companies listed on the NZAX alternative market discovered that they have to contend with a nearly fivefold jump in fees.

The following day, the NZX launched its new NXT market for small and medium-sized enterprises valued at $10 million to $100 million, which are under a less onerous disclosure regime because they are required to submit regular reporting of key operating metrics rather than the continuous disclosure regime that operates for companies listed on the NZX main board.

Previously, NZAX-listed companies with market capitalisations below $15 million paid an annual listing fee of $5375 whereas now companies listed on the alternative market and the NZX main board with market capitalisations below $50 million must pay a $25,000 annual fee from July 1.

Twelve NZAX issuers out of a total of 22 are affected.

With NXT established, the the exchange operator wants to phase out the NZAX.

NZAX issuers that fit the criteria can shift their listing either to NXT or the main board. Those with market capitalisations below $10 million may have to delist at a cost of $16,500.

It is anticipated that the matter will be taken up with the Commerce Commission or the Financial Markets Authority.

A NZX spokesperson has commented that the exchange is prepared to be flexible.