Cross Listing

[grandia3]

Hello there fellow investors

I noticed that some companies are cross listing (usually on domestic and the US exchange)

What is the benefit of doing it?

the advantage and disadvantage I can think of:
advantage:
improved liquidity? (not too sure here)
as a mean of advertising

disadvantage:
2 "different" group of people to "satisfy", hence more pressure on decision
listing and disclosure requirement
more exposure hence more volatile?

I don't think that the benefit > cost
but, could anyone with more experience than me give some guidance?
thanks

 

[skyQuake]

Hello there fellow investors

I noticed that some companies are cross listing (usually on domestic and the US exchange)

What is the benefit of doing it?

the advantage and disadvantage I can think of:
advantage:
improved liquidity? (not too sure here)
as a mean of advertising

disadvantage:
2 "different" group of people to "satisfy", hence more pressure on decision
listing and disclosure requirement
more exposure hence more volatile?

I don't think that the benefit > cost
but, could anyone with more experience than me give some guidance?
thanks

Access to more investors so more people have heard of that stock its good to be on the radar and watchlists.
I think the main reason is when it comes to cap raising time - access to a much larger pool of instos (esp US listing compared to Aus)

 

[Craton]

So I'm assuming Cross Listing = Dual Listing

Seems this is losing favour with some of the bigger players, BHP, Shell and WPL? etc.
In pre-internet and 24hr trading days, I can see where this would have been a benefit but in today's world not-so-much thus, is dual listing a thing of the past and no longer relevant?
Can a dual listing still be of help to raise funds/capital etc or just a expense drain?

TIA