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Cross border listings

Cross Border Listings

A cross-border listing occurs when a company lists its shares on a stock exchange in a foreign country, in addition to its home country’s exchange. This allows the company to access capital from international investors, increase its visibility, and expand its shareholder base. Companies pursue cross-border listings to raise additional capital, enhance liquidity, and strengthen their global presence.

Example

Alibaba, originally listed on the New York Stock Exchange, later pursued a secondary listing on the Hong Kong Stock Exchange to attract more Asian investors.

Key points

• Cross-border listings allow companies to trade on foreign stock exchanges.

• Companies benefit from access to international capital, greater liquidity, and a broader shareholder base.

• Popular exchanges for cross-border listings include the NYSE, London Stock Exchange, and Hong Kong Stock Exchange.

Quick Answers to Curious Questions

Why do companies pursue cross-border listings?

To raise additional capital, increase global visibility, and expand their shareholder base by reaching international investors.

What is an example of a company with a cross-border listing?

Alibaba is listed on both the New York Stock Exchange and the Hong Kong Stock Exchange.

What are the benefits of cross-border listings?

The main benefits include access to international capital markets, improved liquidity, and enhanced global presence.

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