Extending growth options for all businesses
Connecting private enterprises with the right kind of investor is a powerful part of what we do and despite our allegiance to the private markets, sometimes the right kind of investor is in the public markets. So, we’re working with NZX to make sure businesses have all the growth options available to them.
Syndex has long been disrupting the private markets, with efforts to make it more transparent, liquid and independent, bringing it closer in alignment with the public markets. Ultimately Syndex has made the private markets more interesting and accessible for investors and more efficient and advantageous for Issuers. The digital infrastructure offers Issuers registry management solutions, an investor communications system and a marketplace, now, with NZX, there is a further reach into the public markets. The Syndex technology platform is perfectly placed to offer a seamless transition from one market to the next.
We believe that this partnership can do more to power-up the economic recovery, by building out the pool of entrepreneurship and early-stage businesses and facilitating more options to mid-stage companies – so that they have the financial backing they need, a secondary market to support liquidity, as well as the tools to provide efficiencies and relationships with shareholders. This is a logical step for the capital markets ecosystem and offers alternative and sustainable growth narratives to businesses in a climate where debt structuring is becoming less desirable.
This is an opportunity to support and nurture private companies through their full lifecycle; from the first capital raise all the way through to a public listing, with the full continuity in infrastructure.
An example of who this partnership can benefit is New Zealand Rural Land Company. They are a private business currently positioned on the Syndex marketplace. The company plan to use raised capital to invest long-term in farming land which will be leased to professional farmers, linking capital markets to the agriculture sector. The new fund is being designed with a public listing in mind, but for this year growth is being attained via wholesale investors in the private markets. As users of the Syndex registry platform they will be able to list directly on the NZX without changing service partners.
This scenario suits those businesses seeking larger scale capital raising and/or swift liquidity options. Syndex and NZX intend to reach out to the business community to cultivate a new way of envisaging growth, one with less bank control and debt. Having more options available to companies can only benefit our economy and communities.
Our commitment in this partnership extends to helping build wealth for New Zealanders. So for investors our investment opportunities will only get even more interesting. Transparency will be further enhanced by quantitative frameworks which will allow investors to understand the fortunes of these private companies from their first private capital raise through to be public listing and provide good insights and learnings.
If you have any questions regarding this partnership please get in touch - info@syndex.exchange