Cross Listing

[Costa]

Seen some comments on the other place regarding this and one in particular late today that it was 'worrying'. Can't remember the posters name for a minute, perhaps because they are inconsequential. But i digress.

Dual listing Advantages
Increased liquidity
Increased access to a larger capital base
Increased trading time
Increased public profile and visibility
Increased accessibility
Better Governance
All of the above leading to greater II & analyst interest?

Disadvantages
Increased pressure (potentially a good thing)
Increased reporting and disclosure requirements
Additional scrutiny by analysts in advanced market economies
Increased fees.

Anything else guys?

[College Yard]

Australian investors - and Canadians too - understand the mining sector better than most AIM investors. The majority of AIM investors can't see further than imagined speculative returns. Greatland/Northern Star 2 is going to be an investment not a speculation - so ASX is a better place to be.

[lebugue-addick]

Hi Costa

Also, as Shaun said this morning at D&D Forum:

...."if you look at the observed multiples over time, they typically trend higher or trade higher multiples here in Australia so there's an opportunity to benefit from that arbitrage".

[@ianbow]

Sums it up well Costa.

From a LTH point of view, I see this as a natural progression and can only expose GGP to a more sophisticated investor base, both institutionally and privately.

Another professional performance by Sean on his home turf

[Hydrogen]

For Shaun to headline “we’re listing on the ASX” - with it is v interesting.

I suspect, knowing a little about the way the superannuation system works in Australia- there are basically 4 or 5 companies who compulsory invest for everyone! All working people - 15m or whatever it is…

Shaun will know all these managers personally.

This will be about bringing in big money IMO.

[LoggyLogbot]

I've been attempting to research the effect of dual listings.
A few people on this site and the other have made suggestions of what or how this could impact us.

My understanding (so far) is that there would be no specific dilution? It's not like an IPO where new shares are created - effectively the Australian market gets access to the same shares as london. Which is why SD is stating that there would be increased liquidity - he obviously sees it as increased demand.
Does this sound correct?
It seems the most simple and logical explanation?
Obviously there would be costs involved with setting up & administrative costs.

Some people have suggested all kinds of things such as reverse takeovers - but as far as I see, all these suggestions would involve high costs or dilution ( you can't takeover a company for free! )

[DipSard]

Explains the difference between cross and dual listings
https://investinganswers.com/dictionary/d/dual-listing

Excerpt:
Cross-listing is often confused with dual listing. Both terms refer to a company listing their equity shares on a domestic and foreign exchange. However, cross-listing refers to one company listing the same stock across multiple exchanges. Dual listing occurs when two companies (functioning as one) list their individual stocks on different exchanges.

What Is Cross-Listing?
https://www.investopedia.com/terms/c/cross-listing.asp

Excerpt:
Cross-listing is when a company in one country becomes listed on more than one exchange or an exchange in another country. A business would typically want to become cross-listed if it needed access to more capital than is available on one exchange or if the move was part of its strategic growth plan. This tactic has several advantages and disadvantages.

To be approved for cross-listing, the company in question must meet the same requirements as any other listed member of the exchange with regard to accounting policies. These requirements include the initial filing and ongoing filings with regulators, a minimum number of shareholders, and minimum capitalization.

https://en.wikipedia.org/wiki/Cross_listing

Excerpt:
Cross-listing (or multi-listing, or interlisting) of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange.

To be cross-listed, a company must thus comply with the requirements of all the stock exchanges in which it is listed, such as filing.

Cross-listing should not be confused with other methods that allow a company's stock to be traded in two different exchanges, such as:

• Dual listed companies, where two distinct companies (with separate stocks listed on different exchanges) function as one company.

• Depositary receipts, which are only a representation of the stock, issued by a third-party bank rather than by the company itself. However, in practice the two terms are often used interchangeably.

• Admitted for trading, where a foreign share is accessible in a different market through an exchange convention and not actually registered within that different market.

[LoggyLogbot]

That's interesting Dip, thank you - so I've described cross listing!
To me, it does sound the more plausible of the two.

https://www.mining-journal.com/leader-i ... ist-on-asx

[Costa]

Changed the name of this thread to 'Cross Listing'

Reason: Because the thread is to discuss what SD mentioned at the D&D event and incorrectly used the title of Dual Listing.

[CanisLycaon]

Some more useful information here, with various additional links, should you be interested:

https://www2.asx.com.au/listings/how-to ... quirements

[DipSard]

Equity Capital Markets in Australia: Regulatory Overview
A Q&A guide to equity capital markets law in Australia.
The Q&A gives an overview of main equity markets/exchanges, regulators and legislation, listing requirements, offering structures, advisers, prospectus/offer document, marketing, bookbuilding, underwriting, timetables, stabilisation, tax, continuing obligations and de-listing.

https://uk.practicallaw.thomsonreuters. ... c.Default)