CNSX Global Markets, parent company of the Canadian Securities Exchange (CSE), has acquired National Stock Exchange of Australia (NSXA) parent company NSX.
The all-cash deal, approved by 94.78% of NSX shareholders, would see ordinary shares purchased at AUD 0.04 each.
NSX chairman Tim Hart commented, “[We] look forward to giving the Australian market what it needs: greater choice for investors to build wealth and a lower cost of capital for companies to fund their growth, especially in the early-stage and venture space.”
NSXA is currently the second largest primary listing venue in Australia, with 51 listed securities. According to Macquarie Equity Research, close to 550 further companies would be eligible to list on the platform.
Competitor Australian Stock Exchange (ASX) has more than 2,000 listed entities.
Australian equity markets have struggled with liquidity issues in recent years, in part due to a small investible universe, market participants have said.
READ MORE: Australia’s liquidity drought
Earlier this year, Cboe received Australian Securities and Investments Commission (ASIC) approval to launch a listing market in Australia, putting it in direct competition with the incumbent ASX.
READ MORE: Cboe challenges ASX for Australian primary market share
Max Cunningham, NSXA CEO and managing director, will continue to lead the exchange, with CNSX Group providing financial, technical and strategic support. CSE CEO Richard Carleton is expected to join the NSXA board of directors.
“The CNSX Group and NSXA are taking immediate steps to strengthen the NSXA’s competitive position in Australia and build a dynamic exchange alternative tailored to the needs of early-stage companies in Australia and beyond,” CNSX stated.
Planned actions include upgrades to the NSXA tech stack and a hiring spree to build out all business lines.
Cunningham noted, “Another exciting aspect of our partnership is the potential for inter or dual-listing opportunities across our exchanges for Australian, Canadian and global companies, which multiple entities in the mining and early-stage tech space are exploring already.”
