PERTH, Australia, Nov. 13 /CNW/ - The immense resources of the North
American capital markets are increasing rapidly in importance to Australian
companies, according to a senior executive of TSX Group. There have been seven
Australian listings on Toronto Stock Exchange in 2007.
Rik Parkhill, President of TSX Markets, said in Perth today that
accessing North American capital through Toronto Stock Exchange could help
Australian companies - and especially mining companies - to unlock their full
"Despite its relative affluence, the fact is that the Australian market
for capital is under heavy pressure in a booming economy," Mr Parkhill said.
He added, "There are simply too many potential targets for the available
domestic capital and a host of worthy companies are missing out on growth
opportunities as a result."
"The TSX has a well-established reputation as a leading global market for
mining companies and is closely watched not only by Canadian investors but
those in the United States as well," said Mr. Parkhill.
"Dual listing on the Australian Stock Exchange and the TSX makes
increasing sense. Many North American investors are conscious of the global
significance of Australia's mining sector but factors such as the time
difference make trading via the ASX inconvenient for them. The TSX is in the
right time zone for these investors - and they are familiar with it."
Mr Parkhill's views were endorsed by Liam Twigger, Managing Director of
West Perth-based Prime Corporate Finance Pty Ltd, which has assisted a number
of Australian companies to access the North American market.
"I believe one of the biggest issues facing Australian mid cap mining
companies is their low valuations relative to overseas peers. North American
investors are crying out for new product and opportunities but want the
companies to trade in their time zone. Listing on the TSX will provide access
to the deep North American capital markets, international coverage, investor
base diversification and provide further liquidity for shareholders. This
should translate into a re-rating and improvement in value over time."
He added, "One of the most frequent difficulties for Australian mining
companies below the blue-chip tier has been constraint on the liquidity of
their shares," he said.
"This squeeze is being intensified by the mining boom and the general
strength of the Australian economy. Listing on a noted international mining
exchange like the TSX can break the liquidity stranglehold virtually
overnight, with a natural flow-on to value," said Mr. Twigger.
About TSX Group Inc. (TSX-X)
TSX Group operates Canada's two national stock exchanges, Toronto Stock
Exchange serving the senior equity market and TSX Venture Exchange serving the
public venture equity market, Natural Gas Exchange (NGX), a leading North
American exchange for the trading and clearing of natural gas and electricity
contracts and Shorcan Brokers Limited, the country's first fixed income
inter-dealer broker. TSX Group also owns The Equicom Group Inc., a leading
provider of investor relations and related corporate communication services in
Canada. TSX Group is headquartered in Toronto and maintains offices in
Montreal, Winnipeg, Calgary and Vancouver.
For further information:
For further information: Steve Kee, Director, Corporate Communications,
TSX Group Inc., Toronto Office, (416) 947-4682, Toll Free 1-888-873-8392,
Cellular (416) 358-3714, Vancouver Office (604) 602-6902, Calgary Office (403)