The New Zealand Stock Exchange (NZX) is trying to win back Laybuy as the rising technology company is set to list on the Australian market.
The buy now pay later firm was founded in New Zealand and is controlled by a local investment firm, but operates mostly in Britain.
Laybuy announced on Tuesday that it aims to list on the ASX by June.
A source close to Laybuy told RNZ it considered listing on the NZX but decided against it because it believed Australian investors better understand its business, with two competitors – Afterpay and Zip Co – listed there.
Afterpay has seen rapid growth with a near $AU9 billion market capitalisation, following its ASX listing in 2016.
“We’re naturally disappointed,” NZX chief executive Mark Peterson said.
“We are still continuing discussions with them because we actually see real value in them having certainly a dual listing here.”
“You can do it at very little extra cost. We just see it as a really sensible thing to do.”
NZX representatives spoke to Laybuy last week about listing options and was wanting to continue talks, Peterson said.
The source said Laybuy did not consider dual-listing on both the ASX and NZX.
“However, increased complexity around increased regulation, having to be across two markets’ regulatory environments, just makes it somewhat harder.”
Laybuy is majority owned by the New Zealand investment firm Pioneer Capital, and its managing director Randal Barrett said the directors and shareholders agreed with the advisors to list Laybuy only on the ASX. He said Pioneer had dual-listed its investments before.
Peterson said Laybuy’s Australian advisors would have recommended a single listing on the ASX because they knew that market best.
“It does not need to be quite as binary as they [Laybuy’s advisors] are making out.”
This article was originally published on RNZ and re-published with permission.