Second listing
A second listing (also dual listing ; English cross-listing or dual-listing ) is the admission / listing of shares in other than the country in which the first IPO (initial public offering) of a company takes place.
development
Second listings used to be an often chosen way of companies to be listed on the stock exchange in a second country and thus to reach a larger group of investors. American companies in particular strived for Europe, and European companies for North America.
Due to the high additional fees due to the second listing as well as increasing tendencies in investor mobility - i.e. the large investors themselves now have branches in all important financial centers so that companies no longer have to come to them - the trend towards second listing has decreased in recent years. This is supported by the fact that by far the majority of investors are professional, global investors and not small investors . So have z. B. meanwhile also some companies decided to withdraw and are no longer directly z. B. listed in the United States.
Another negative aspect are the very high regulatory requirements that can vary from country to country and thus discourage companies planning a direct listing in a second country.
The latest and most comprehensive form of multiple listing is global listing via a globally registered share ( Global Registered Share , GRS) . This is the securitization of direct company shares in shares, which is directly admitted to trading on a large number of stock exchanges. One of the prime examples is the DaimlerChrysler AG share, which is also considered the first “correct” globally registered share. This type of share requires the publication of the prospectuses in different languages and the establishment of transfer agents in the different countries.
After large German companies such as E.ON , BASF and Bayer had already given up multiple listing in favor of an exclusive listing in Germany, in September 2009 the alliance also announced the abandonment of its secondary listings .
Second listings via depository receipts
In the meantime, depository receipts have provided many companies with a comparatively inexpensive option of making their own shares indirectly tradable abroad, depending on the
Less common local depository receipts, but the same structure, are:
- International Depositary Receipts (IDR) - listed in Brussels
- Dutch Depositary Receipts (GDR) - listed in Amsterdam
- Swedish Depositary Receipts - listed in Stockholm
- Singapore Depositary Receipts (SDR)
In general, the company does not have to have its own shares listed abroad, but offers tradability via an intermediary investment bank that is active in both countries, stores the shares in the company's home country and offers investors abroad corresponding indirect trading.
See also
- initial public offering
- American Depositary Receipt
- European Depositary Receipt
- Global Depositary Receipt
- Dual-listed company
Individual evidence
- ↑ DaimlerChrysler AG, the first truly global share
- ↑ Page no longer available , search in web archives: Allianz intends to discontinue listings on the NYSE and European stock exchanges and to focus stock trading on markets with the highest liquidity
- ↑ International Financing - Focused on GDR and ADR