Who are the NEX exchange?
We discuss the latest news on the NEX exchange with the CEO, Patrick Birley. We begin by discussing the story so far; with 2017 being a tough year for the equity markets; NEX exchange conversely have had a great year! This year saw them officially became NEX! This change has allowed them to create a brand and their marketing plan has managed to get people talking about them.
A part of the positive story for the year is due to the fact that they saw more new joiners to than leavers from the exchange. They had a selection of interesting secondary raises; Chapel Down for example raised £18m in a secondary issue. If you want to see more of the Chapel Down story, click here.
They have begun to see a sharp increase in trade in the secondary market for their companies. Coinsilium for example, a Blockchain specialist, have increased their share price five fold this year alone. To see more from Coinsilium, please watch our interview with them here. Looking at the market as whole, retail brokers have not historically taken them as seriously as the competition, happily this is no longer the case.
A lot of the companies listed on the exchange however are happy with not being in the limelight as it is not critical to their business. On the other hand, those companies interested in attracting investor interest; Patrick tells us about the retail brokers and market making opportunities offered by the NEX exchange. Such as their relationship with Winterflood Securities, Shore Capital, Peel Hunt etc. The pricing is attractive relative to similar sized companies on other exchanges.
What sets NEX apart from the other exchanges?
Patrick tells us that it is very important to have competition in this space. It allows the exchanges to push the boundaries. Previously it was expensive, bureaucratic, and over bearing. Consequently the attitude of the NEX exchange was to care for the community. They want successful issuers. They care about investors, people that will do the due diligence on the companies.
NEX want public equity to be interesting, exciting for investors, meanwhile still acknowledging that the listed companies tend to be smaller and more entrepreneurial. The main aim for the exchange is to simplify the process for companies listing on the market. Whilst still being mindful of the regulatory processes involved. Assessing that the companies are appropriate for the public to be involved.
Plans for 2018?
Patrick reminds us that different companies want different things from publicly listing; this is something that they are cognisant of and ensure that they act appropriately in each and every case. For 2018 Patrick wants to see more companies listing. Continuing to service and grow the current companies. Dealing with the political and macro issues as they arise. Make their offering attractive and exciting, whilst allowing issuers to raise money successfully and getting good results for investors.