Cross listing
A second listing (also cross-listed; . Engl cross -listing or dual -listing ) is the registration / listing of shares in a country other than the country in which takes place the first IPO (Initial Public Offering) of a company.
Development
Second Listings were once an often chosen path from company to fall into a second country listed on the stock exchange and thus to achieve a larger group of investors. Especially American companies targeted so to Europe, as well as European companies to North America.
Due to the high additional fees by the second listing and increasing tendencies of investors mobility - ie the big investors now own offices no longer have need only come to these in all major financial centers which forces companies - the trend of the second listing dwindled in recent years. This is supported by the fact that by far the largest part of the professional investors, global investors and retail investors are not. Thus, for example, are now also some companies opted for a retreat and so not directly, eg trade in the United States.
Another negative aspect is very high regulatory requirements which may vary from country to country and so the company deters a direct listing in a second country planning in addition.
The latest and most complete form of the multiple listing is the Global Listing on a global registered share ( Global Registered Share, GRS). This is the securitization of direct business interests in shares that will be admitted to a variety of markets directly to trading. One of the best cases is the share of DaimlerChrysler AG, which is also considered a first "real " global registered share. This equity type exposes the publication of brochures in different languages as well as the setting up of transfer agents in the different countries is required.
Having already have the multiple listing abandoned in favor of an exclusive listings in Germany large German companies such as E.ON, BASF and Bayer, announced in September 2009, the alliance of its secondary listing on the task.
Cross-listings by depository receipts
Meanwhile, a relatively inexpensive way has for many companies by depository receipts arise to make the own shares abroad indirectly tradable, which depending on
- American Depositary Receipts,
- European Depositary Receipts or
- Global Depositary Receipts happens.
Less widespread local, but from the same building, certificates of deposit 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)
The Company generally does not have the own shares are traded abroad, but offers the public trade of an averaging investment bank, which is active in both countries, the shares deposited in the home country of the company and offers investors abroad according to an indirect trade.