RE: INTERSTING INTERVIEW30 May 2025 12:11
Not sure if Dual listing would be in our best interest as share holders, it means creating two separate companies, one on the LSE one on the JSE. Cross listing seems a better option, which is what GGP are going to do.
In the world of international capital markets, dual listing and cross listing are related but distinct strategies a company can use to expand its reach beyond its domestic market. Dual listing typically involves a company having separate legal entities listed on two or more exchanges, while cross listing refers to the same company being listed on multiple exchanges with the same shares being traded.
Dual Listing:
Definition:
A company lists its shares on two or more primary stock exchanges as separate legal entities.
Structure:
Each entity operates as part of the same overall company, but they are legally independent.
Common Scenario:
Often results from a cross-border merger of two already listed companies.
Example:
Two companies merge, but each continues to have its own separate legal entity and listing on different exchanges.
Key Feature:
Shares on different exchanges are not interchangeable, and there are separate shareholder registers.
Benefits:
Greater access to capital, increased liquidity, and enhanced global profile.
Drawbacks:
Higher costs associated with listing on multiple exchanges and increased compliance burdens.
Cross Listing:
Definition:
A single company lists its shares on multiple exchanges, but the same shares are traded across all exchanges.
Structure:
One legal entity, but shares are traded on different exchanges, with the goal of expanding investor access.
Example:
A company based in Hong Kong lists its shares on the Hong Kong stock exchange (primary listing) and also on the US stock exchange (cross-listed).
Key Feature:
Shares are interchangeable across the different exchanges, and shareholders have the same rights regardless of where they purchased the shares.
Benefits:
Increased liquidity, access to a wider investor base, and potentially higher valuations.
Drawbacks:
Compliance requirements for multiple exchanges, and the need to navigate different regulations.
Key Differences:
Legal Entities:
Dual listing involves separate legal entities, while cross listing involves one single legal entity.
Share Interchangeability:
Dual listing shares are not interchangeable across exchanges, while cross-listed shares are.
Complexity:
Dual listing is generally more complex due to the need to manage two separate legal entities.
Cost:
Dual listing can be more expensive due to the need to comply with different regulations and maintain separate corporate structures.
Lets get NEO out of suspension and re listed on the LSE first, please Jason.
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