RE: A very IMPORTANT RNS - Environmental Committee (NASDAQ Listing Coming?)14 Jan 2022 17:57
A US listing would certainly add volume to daily trading. US traders tend to lend more weight to valuations as well.
The impact will only be that of retail traders, as RS implied, as most institutional firms will be able to access Cineworld shares. It is worth noting, however, that opening up shares to trading in the US exposes Cineworld to bearish traders as well. Those that are lending stock or loading up on puts can have an adverse effect on the share price.
US traders are also less fussed with debt. Unlike the UK, the US effectively borrowed their way out of the 2008 crisis (and successfully so).
You are not diluting the share. Merely listing your shares on another exchange so that they can be accessed locally. Do not confuse listing on another exchange with demerging or spinning off the a part of the business. I previously worked at a large company that had four listings globally. It is just a mechanism to raise capital in different locations, particularly useful if you have a presence in those markets (as Cineworld does). This was does through ADRs.
It should largely be a positive move. US traders have all the enthusiasm on this board and often a lot more resource to back it up. We may find a number of BCs join the share register (hopefully more quietly). While it should be positive, people here should exercise caution. It will not solve all problems or results in billions of dollars raised.