Geelong takes stock of exchange proposal

Hamish Heard
A Geelongbased stock exchange could soon be a reality after City Hall announced it was investigating moves to allow local businesses to list their companies for public ownership.
Council economic development portfolioholder Shane Dowling said City of Greater Geelong would work with the business community and the chamber of commerce to establish a local stock exchange.
He made the announcement after National Stock Exchange of Australia chief Richard Symon spruiked the concept in Geelong last week.
Mr Symon told a Geelong Business Connections dinner that the city should follow the lead of regional centres including Bendigo and Wollongong in setting up its own exchange.
“If you multiply the 70,000 employees in the greater Geelong area by the average wage and take from that nine per cent compulsory superannuation you’ve got $6.5 million flying out of this region each week,” Mr Symon said.
“You’ve got no ability of capturing that at present except from those one or two companies that might be listed on the Australian Stock Exchange.”
A Geelong exchange would also allow local companies to increase productivity by releasing share packages to employees so they had a stake in their bosses’ success or failure, Mr Symon said.
He also highlighted the benefits of listing on a regional stock exchange for family enterprises engaging in succession planning.
“On exchange you have the ability to divide up the ownership of your company and pass on shares in your company to the next generation,” he said
Any local company with a market capitalisation of more than $500,000 could list on a regional stock exchange, provided it could muster 50 shareholders, Mr Symon said.
Companies had to release only 25 per cent of shares to the public.
Cr Dowling said a Geelongbased stock exchange would stimulate regional economic growth.
“Local investors can put money into local businesses that they know and trust. This in turn gives local firms greater access to capital enabling them to build their business at a greater rate,” he said.
“A regional stock exchange provides emerging and innovative small and mediumsized businesses the means to fund growth.”