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Except it isn't.
Sure, you can't buy in the UK and sell in Poland.
But if existing holder you can sell in Poland and re buy in the UK for a fraction of price.
And if new holder why would you buy in Poland when can buy 10x amount in the UK?
Those are valid questions. Maybe it is as simple as retail investors not having overseas excahnge availability.
The stock is not fungible so there is no arbitrage opportunity, as you cant buy in the UK and Sell in Poland you may as well view them as two separate companies, so all the conversation around the difference in price is like comparing SENX with BP, pointless.
The only thing that will create value is increasing volumes and reducing Tax royalty in Romania
Sorry re my last post latest price in Warsaw is around 0.775 and not 0.75 so multiply by 14.5 and gives a relative UK price of 11.24 approx. ATB.
Sorry re my last post latest price in Warsaw is aroubd 0.775 and not 0.75 so multiply by 14.5 and gives a relative UK price of 11.24 approx. ATB.
Please find a copy of most of my post from October 2021.......Here is the article from Directors Talk Interviews dated 5th February 2021 and article heading is " Serinus Energy Note pricing anomaly between London and Warsaw listings."
Serinus Energy plc (LON:SENX, WSE:SEN) have noted that recently a significant difference has developed between the prices at which shares in the Company are trading on the London and Warsaw stock exchanges. Shares on both exchanges have the same International Security Identification number (“ISIN”) JE00BF4N9R98 and participate equally in the profits of the Company. Regulatory information is notified to both exchanges at the same time, and the directors confirm that the Company has notified all price sensitive information required by securities regulation in both jurisdictions.
The Warsaw Stock Exchange is a Recognised Investment Exchange whereas AIM is a Multilateral Trading Facility; the former requires a prospectus for the admission of securities whereas the latter does not. While the Company produced a prospectus, available on the Serinus Energy website and dated 26 September 2014, admitting 38,479,608 shares to trading in Warsaw, it has not been updated since. In total 78,629,941 shares have been admitted to trading in Warsaw. This means that whilst all 1,140,660,629 issued and outstanding shares of the Company are eligible to be traded on AIM only 78,629,941 of these shares are eligible to be traded on the Warsaw Stock Exchange.
So as at the 5th February 2021 the LSE traded around 14.5 times the shares in Warsaw. ie 1 140 660 629 divided by 78 629 941 By my calculations now with the price in Poland at approx 0. 75 this should be multiplied by approx 14.5 giving a price relative to the UK of 10.88. This is a rough calculation.
I know there has been consolidation since of 100.1 just to confuse matters but looks like the bottom line is that are far less shares traded in Warsaw which gives the anomoly. I used to hold shares here but sold at a loss towards the end of last year and was just looking in too see how Senx was doing. Hope this helps. ATB.
I think there is roughly 10% of outstanding shares trading in Warsaw, whoever is buying them (not sure why you would) is paying more than 10x what you can buy for in London. So this is either lunacy or the major holders in Warsaw have been able to exploit this to their advantage in some way...something gotta give eventually...I do think Warsaw is closer to fair value than London, but I would say that haha
It is indeed strange. The mcap is £13m on AIM and £160m on WSE. The 8m (or 80m in old money) shares on WSE are eligible on AIM, but not vice versa. There is a theoretical arb there of about £10m, if fully captured at current prices . But I guess the reason not been done is that requires selling on WSE, and no one is willing to buy up enough at that already elevated price to make it worthwhile.
I thought it was the EBRD block from the restructuring being run out early on the London market that was widening the difference, but not the case. It is just inefficient markets - not that that is really an explanation.
This was answered on the investormeet presentation for the full year results 21st March 2022
If you have access to that platform you can hear the full answer. It is in the Q&A section.
The company basically said there is no difference in the shares on either exchange. They do not understand why there is such disparity. They also referenced the RNS they put out a year prior to that meeting stating such.
I would like to know the reason why are the shares on LSE so much cheaper than on WSE. I was wondering that maybe there is lower amount of available shares on WSE, but according to this website https://www.bankier.pl/inwestowanie/profile/quote.html?symbol=SERINUS the MC of Serinus on WSE is 889 715 369,4 zl, which would imply a similar amount of shares as on LSE. Can anyone confirm that market cap on WSE is really about 890M zl, which is about £161.6M. Over 13 times bigger MC than on LSE? How is this possible? I know there can be differences at different stock exchanges because of different costs, liquidity etc., but such a huge difference for such a long time is incredible. Maybe the was some whale on LSE willing to sell for any price and pushed down the stock so low? But if it was the case, why there is no arbitrage? Why don't people from WSE sell SEN shares and buy it here on LSE to get 13 times more shares for the same price? Can anyone help me with this? I have been scratching my head for a few days about this problem.
Someone on the bankier chat wrote there there are only 7M shares on WSE (which would mean that the Bankier info about the company MC is wrong), but that would make the MC on WSE even lower than on LSE. It does not make sense with the prices of oil and gas and the current profits of the company.