The National Stock Exchange (NSX) is banking on the dual-listing of Canadian copper explorer Gladiator Metals to usher in a new wave of offshore and smaller companies seeking more affordable local options than the ASX. Gladiator Metals, a Canadian company focused on copper exploration and development, is set to become the NSX’s largest float since 2016. Commencing trading this Wednesday with a market capitalisation of nearly $250 million, the miner will retain its primary listing on Toronto’s Venture Exchange, marking the NSX’s first Canadian dual-listing. Gladiator’s chief executive, Jason Bontempo, cited substantial compliance and administration costs on the ASX as the reason for choosing the NSX.
Mr Bontempo expressed belief in the NSX’s potential to become a formidable venture platform in Australia, noting its entry barriers and ongoing compliance are more commensurate with venture-stage businesses. This contrasts significantly with the ASX’s more stringent requirements, which demand a profit test or substantial assets/market capitalisation, alongside 300 shareholders. The NSX’s minimum market capitalisation, by comparison, is just $500,000. Despite a history of struggling to attract major listings, NSX chief executive Max Cunningham, a former head of listings at the ASX, indicates significant interest from Canadian-listed companies seeking Australian market exposure.
The ASX, however, offers a streamlined pathway for larger international companies with a market capitalisation of at least $2 billion and a primary listing on an equivalent exchange, often waiving full prospectus requirements. ASX group executive Darren Yip asserts that high-calibre companies gravitate towards capital, highlighting the ASX’s robust pipeline of “high-quality and mega-listings” and its significant daily liquidity of around $9 billion. While the NSX has seen growth in direct brokers, it remains largely overlooked by institutional investors. Forager chief investment officer Steve Johnson described it as a “graveyard,” arguing that globally, a “liquidity vortex sucks everything into it, so running an illiquid stock exchange doesn’t work.”
