Founder of Davis Food Ingredients Urges NZX to Reignite Market Appeal

Highlights:

• Daniel Coates, founder of Davis Food Ingredients, urges NZX to do more to attract private businesses.
• He expressed disappointment in the local sharemarket’s decline in appeal over the last decade.
• NZX management says it is rebuilding its pipeline of potential listings.

Daniel Coates, founder and 24.6% stakeholder in Davis Food Ingredients — a company generating $320 million in annual revenue — has called on NZX Limited (NZX: NZX) to take a more proactive approach in encouraging private businesses to go public. Coates made his remarks during NZX's annual general meeting, having bought shares specifically to attend and voice his concerns.

“NZX Has Lost Its Spark,” Says Coates

Coates, who made it clear that his remarks were not a critique of NZX’s operational performance, expressed disillusionment with the direction of the New Zealand sharemarket. He noted that over the past decade, the market appears to have lost its energy and appeal, particularly to private businesses considering public listings.

Coates argued that NZX should focus on positioning itself as an attractive destination for companies like Davis Food Ingredients, which remain privately owned despite their scale. “There’s an opportunity for NZX to better communicate the value of listing, especially to successful, privately held firms that have the scale but lack the incentive,” he said.

NZX Management Responds

NZX chair James Miller acknowledged Coates’ points and said the exchange was actively working to rebuild its pipeline of potential listings. CEO Hamish Macdonald noted that a number of companies are currently in early-stage discussions with NZX, though he didn’t provide specifics. At the time of writing, NZX Limited (NZX: NZX) shares were trading at NZ$1.11.

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