Can anyone explain buying a companies secondary listing?
Discussion
I recently bought some shares on the Oslo stock exchange which was a ball ache converting money and sending it to my share dealing account and will likely be a similar ball ache moving it back.
The company also has a listing priced in Euros (I live in France, so it would be nice not to have to convert money) on the Frankfurt stock exchange.
I have no idea how this secondary listing works.
How do i investigate the relationship between the primary and secondary listings? Is there any additional risks i need to be aware of?
I can share tickers if it would help.
Thank you in advance
The company also has a listing priced in Euros (I live in France, so it would be nice not to have to convert money) on the Frankfurt stock exchange.
I have no idea how this secondary listing works.
How do i investigate the relationship between the primary and secondary listings? Is there any additional risks i need to be aware of?
I can share tickers if it would help.
Thank you in advance
Is it MOWI/PND?
They're usually fungible. I've always understood it that you can tell from whether both securities have the same ISIN (which the above two do) although doubt that's 100% reliable; there's probably market/company-specific exceptions to the rule. Plus for a retail punter there's the issue of whether your broker lets you do it anyway.
The prices should be kept inline by institutional traders such that there's no real arb - or at least not that retail could realistically capture.
They're usually fungible. I've always understood it that you can tell from whether both securities have the same ISIN (which the above two do) although doubt that's 100% reliable; there's probably market/company-specific exceptions to the rule. Plus for a retail punter there's the issue of whether your broker lets you do it anyway.
The prices should be kept inline by institutional traders such that there's no real arb - or at least not that retail could realistically capture.
NowWatchThisDrive said:
Is it MOWI/PND?
They're usually fungible. I've always understood it that you can tell from whether both securities have the same ISIN (which the above two do) although doubt that's 100% reliable; there's probably market/company-specific exceptions to the rule. Plus for a retail punter there's the issue of whether your broker lets you do it anyway.
The prices should be kept inline by institutional traders such that there's no real arb - or at least not that retail could realistically capture.
MOWI/PND being the ticker? Nope. If that wasnt meant to be the ticker then you've lost me They're usually fungible. I've always understood it that you can tell from whether both securities have the same ISIN (which the above two do) although doubt that's 100% reliable; there's probably market/company-specific exceptions to the rule. Plus for a retail punter there's the issue of whether your broker lets you do it anyway.
The prices should be kept inline by institutional traders such that there's no real arb - or at least not that retail could realistically capture.
Ok, ill take a look for the ISIN for a start.
Edit: the company is Reach Subsea
Fair enough! Just hazarded a guess from a quick Bloomberg search for Norwegian companies with secondary listings in Germany, and Mowi being the biggest.
The ISINs are the same across REACH/4RS as well. But it's pretty illiquid, looking at a 1-2% spread even on the Norwegian line!
In Germany it seems to have lines on all the weird little regional exchanges (their market structure is a bit archaic), but not Xetra. Frankfurt looks to be the only one it actually trades on and even then barely - no volume since last Friday. So it looks like you'll struggle to get much done, but you never know.
I suppose one thing if you do try is you'd probably want to do it while both Norway and Germany are open. From memory I think Norway closes about 1530 UK time while Germany stays open for another hour, but once the primary listing is closed the spread on the German line will blow out even more.
The ISINs are the same across REACH/4RS as well. But it's pretty illiquid, looking at a 1-2% spread even on the Norwegian line!
In Germany it seems to have lines on all the weird little regional exchanges (their market structure is a bit archaic), but not Xetra. Frankfurt looks to be the only one it actually trades on and even then barely - no volume since last Friday. So it looks like you'll struggle to get much done, but you never know.
I suppose one thing if you do try is you'd probably want to do it while both Norway and Germany are open. From memory I think Norway closes about 1530 UK time while Germany stays open for another hour, but once the primary listing is closed the spread on the German line will blow out even more.
it can be for a variety of reasons - some possibly historic - last business I restructured was dual listed - utter PITA, two sets of everything and big arguments when the listing rules contradicted one another = big costs. In our case the company had historically acquired a listed supplier and then reversed itself onto that exchange - then, in order to raise finance easier, listed on another exchange. It didn't help that it's products were not legal in the company it was originally listed on...
We delisted from one of the exchanges to maintain sanity and save about $500k/year - unfortunately not the one I really wanted to get off, but that's a long story.
So in short - normally as a way of gaining access to raising capital - but there can be some convoluted back story too.
We delisted from one of the exchanges to maintain sanity and save about $500k/year - unfortunately not the one I really wanted to get off, but that's a long story.
So in short - normally as a way of gaining access to raising capital - but there can be some convoluted back story too.
Shell, sometimes in the past known as Royal Dutch Shell, was an interesting dual listing by a very large plc. It was listed both in London and in Amsterdam with different classes of shares.
Back around 2022 they scrapped the Dutch listing in Amsterdam and focused their activities in UK.
Shell is currently wondering whether to abandon the London Stock exchange and move its listing to New York.
Back around 2022 they scrapped the Dutch listing in Amsterdam and focused their activities in UK.
Shell is currently wondering whether to abandon the London Stock exchange and move its listing to New York.
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