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RAISING money in Australia will be easier for New Zealand companies under government plans to abolish trans-Tasman barriers.
Proposals outlined by the government would allow a New Zealand company to make an initial public offering (IPO) in Australia without having to comply with Australian fund-raising laws or provide a separate offer document.
Similarly, the proposals give local recognition to offerings of Australian securities or managed investments.
Market participants said the trans-Tasman mutual recognition proposals could have far-reaching effect - such as cutting th cost of raising funds, making it easier for medium-sized companies to consider trans-Tasman offerings and expanding the choice available to New Zealand investors.
Commerce Minister, Margaret Wilson said the change removed the "unnecessary regulatory barriers" between New Zealand and Australia.
But New Zealand could be the main winners as their share of the benefits may be greater than those enjoyed by Australia, according to one senior banker and IPO specialist.
He said the existing process for Australian companies to make a trans-Tasman offering was less onerous that that faced by a New Zealand company.
"On that basis, the real change will flow the other way - there is more upside for new Zealand issuers."
"It is more likely to lead to dual listings, particularly for mid-cap companies that would usually list in only one market."
Investment bankers said that would not mean a loss for the new Zealand stock market, rather the reverse. The New Zealand Exchange would benefit from the boost to capital markets flowing from lower transaction costs, greater choice and more liquidity.
New Zealand Exchange chief executive, Mark Weldon is an enthusiastic supporter of the move, which he said would reduce the temptation for companies to head off-shore by making it easier to raise money from their home base.
"It's these types of things that when you add them up really make a difference in the long run - much more than discussions about a common currency."