RE: Question please10 Jul 2025 14:16
This is how I understand it:
The two exchanges are like different shops, in different places, selling different things. So like many shops they have mostly different goods (listings), only a few are dual (like NEO will be), and they sell to different customers (LSE to Europe and internationally, JSE to Africa) so they sell different products to different people.
The same number of shares will be available, but investors with access to the JSE will be able to buy NEO after the dual listing, they can't now, unless they are on a platform that has access to that share, like I can't buy Absa Group (ABG) from the JSE on HL but I can buy it on Trading 212.
Strate wil act like a transport company, the NEO's shares will sit on LSE, someone will buy them on the JSE, Strate facilitate the transfer, less shares will now be available on LSE. Shares will keep moving over until a sort of balance is reached, then shares won't only be moved in one direction, they'll move back and forth depending where they are bought.
LSE has a market cap of $3,4 trillion, JSE has $2,3 trillion, that 68% more trading potential, that's a lot of new people that will have access to those shares. The shares will start being bought on the JSE (hopefully), which should make less available on the LSE. when there's less available the price should go up, supply and demand.
That's what I think the theory is.