NXT to launch with compliance listing from private mail firm G3

G3 Group, a mail operations and document management company, will launch NZX's market for small- to medium-sized businesses with a compliance listing on the NXT market.

The Auckland-based company is the first to join the new market on June 18, listing its 53.8 million shares at 75c a piece, giving it an implied market value of $40.4 million, but will not issue any new shares, according to the market announcement. The Wellington-based exchange operator's new platform comes with a less onerous disclosure regime requiring regular operating metrics updates rather than the continuous disclosure on the main board.

NXT will ultimately replace the decade-old secondary board, the NZ Alternative Index (NZAX), which has languished from a lack of investor interest. No new additions to the outgoing market will be accepted once the new platform is up and running.

G3 is made up of New Zealand Mail, Send, Pete's Post and Fastway Post, which provide business mail services, and Universal Mail, a UK-based tourist stamp operation. The company entered into document management with brands Filecorp and Eureka in October last year, and is chaired by Rob Campbell.

"G3 has 10 years of solid earnings history, with consistent year-on-year revenue growth for 10 years, and ebitda (earnings before interest, tax, depreciation and amortisation) growth for the past six years," the company said on its website. "The G3 board of directors believes that there are still strong opportunities for organic growth within the group's existing business operations in the future.

"Further, G3 is actively looking at diversifying its business operations via the acquisition of complementary businesses, and other businesses that are focused on the deployment of data management and data analytic solutions."

In 2014 the company reported ebitda of about $3.5 million, on sales of $30 million, according to the website.

G3 is owned by family trusts associated with Evan Christian and Jason Butler.

(BusinessDesk)