Chapman Tripps has released its annual New Zealand Equity Capital Markets - trends and insights report, stating that 2018 is likely to be a transitional year to healthier capital markets from 2019 onwards.

"We believe 2018 will be a bridging year to more vibrant capital markets in New Zealand from 2019 onwards, thanks to a number of factors, including: NZX’s Listing Rule review, a strong regulatory framework, and robust private equity pipeline." the report says.

"We also expect this year to be similar to 2017, with very limited IPO activity, and a continued decline in the number of NZX Main Board issuers – driven mostly by takeover activity. If market performance remains strong in 2018, next year may see a return to healthier IPO activity and a growing NZX Main Board."

Chapman Tripp says New Zealand's equity capital markets in 2017 were a "tale of two markets" - a shrinking NZX Main Board, but booming levels of secondary capital raisings and strong market performance.

"The number of NZX Main Board issuers fell by eight, primarily driven by takeovers and insolvencies. Several New Zealand-based companies, that may have listed on the NZX, have instead headed offshore through trade sales or, in the case of some smaller cap companies, listings on overseas markets.

"Despite this, those issuers who remained listed have – on the whole – had a stellar year when it comes to market performance and secondary capital raisings."