Dual listing also known as interlisting or cross listin is when a company list equity shares on two or more different stock exchanges. Companies use dual listing because of its benefits such as additional liquidity, attracting more capital and possibility to trade shares for a longer periods if exchanges are in the different time zones. MinaMar Group provides dual listing conulting services so you can be sure to recieve all the benefits of dual listng.
We can open the door to a completely new continent. Cross-border listing broadens the potential shareholder base, reaching the many European investors who are interested in U.S.-traded companies, but want to trade locally. Cross-border listing, sometimes referred to as dual listing, can provide another way for companies to tap into the opportunities of a changing global capital environment. Mina Mar Group can then coordinate a comprehensive investor relations/ public relations program designed to maximize the dissemination of corporate information to potential investors in the U.S. and Europe through its numerous contacts abroad. Listing on a European stock exchange can enhance a company’s status as a truly global player. Mina Mar Group can assist your company to become listed on the Frankfurt Stock Exchange and reach a completely new audience of investors interested in North American stocks, but desiring the benefits of trading locally. The European markets have been very strong, especially in Germany, and there is a strong demand from both private and institutional investors in Europe to invest in small-cap and medium-sized public companies in the U.S. and Australia.
Benefits of Dual Listing
Publicly held companies trading in the U.S. undertake listings on overseas exchanges for a variety of reasons. A company may choose to cross-border list to boost its status as a truly global player, raise debt or equity, increase trading volume, improve shareholder relations, enhance visibility among overseas investors and consumers, tap into retail and institutional funds, and benefit from changing global attitudes toward equity investing.
Expanding Your Shareholder Base:
The diversification of a company's shareholder base spreads its financial risk in the same way that diversifying a portfolio can spread investment risk. This can alter the volatility and liquidity levels of a stock. This is a positive development for most companies.
Liquidity:
Some studies suggest that increased liquidity can inspire market makers to compete with the new market to the lower bid/ask spreads. Companies see that a shift in order flow and trading activity to the new market benefit most investors. Market capitalization and trading volume are important factors. A targeted equity offering through a new share placement may also ensure deeper liquidity.
Raising Capital:
A cross-border listing can help a company target new shareholders for fresh capital. Being listed on the Frankfurt Stock Exchange makes it more attractive for European investors to consider funding a U.S.- based company.
The Frankfurt Stock Exchange (FWB):
The FWB was founded in 1585 and is operated by Deutsche Börse AG. According to exchange data, 45 per cent of Europe's top 300 companies have their primary listings on the London or Frankfurt exchanges. The FWB is by far the largest of the eight German stock exchanges. It ranks third in the world behind NYSE and NASDAQ. Since the launch of Xetra, the FWB’s electronic trading platform, the FWB has offered its clients not only floor trading through brokers, but also fully electronic trading facilities where orders from any point around the globe are automatically entered into the order book on the central computer. We have the expertise to assist you with all of the applications and filing requirements to have you approved for trading in as short a time frame as possible. Listing your company on a European stock exchange such as the FWB is just one facet of the process. Just as important are such supportive activities as specific, tailor-made investor relations and public relations programs which cover the needs of your company, giving it the same corporate image and profile as in your primary trading market.
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