As economies recover, so have stock valuations.
With investors feeling more ebullient, companies are also taking the chance to raise money at higher stock prices..
In the process, some companies have indicated their intention to seek a dual listing on a separate stock exchange.
A dual listing is defined as a company that lists its shares on more than one stock exchange.
The question arises as to whether such corporate actions benefit the company.
Should investors rejoice when such news is announced?
Or is there a negative aspect to seeking a dual listing?
Let’s look at the pros and cons of being listed on more than one exchange.
Increased recognition and a wider investor base
One clear benefit is the ability of the company to raise money in a different country or region.
For instance, if a company is only listed on the Singapore stock exchange (“SGX”), it usually attracts the attention of locals or, at best, regional investors....