Practice // Questions and comments // Implementation of secondary listing

Financial policy : Question 6
When a company is listed on a stock exchange such as Frankfurt and it also wants to be listed on the London stock exchange, for example, does a new company have to be set up in the new country?

ALL THEMES

COST OF CAPITAL
FINANCIAL ANALYSIS
FINANCIAL ENGINEERING
FINANCIAL MANAGEMENT
FINANCIAL POLICY
VALUATION

Either the company gets its shareholders to accept the principle of a capital increase without preferential subscription rights, and the company will issue new shares which will be offered to UK investors if it is seeking a London listing.

Or no new shares are issued, the company's advisory bank will simply carry out an arbitrage by buying a block of shares listed in Frankfurt and the selling them on the first trading day of the London listing at the same price as in Frankfurt.

So a new company is never actually set up.
For more information, see chapter 44 of the Vernimmen.

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Financial policy : Question 6
When a company is listed on a stock exchange such as Frankfurt and it also wants to be listed on the London stock exchange, for example, does a new company have to be set up in the new country?

Financial policy : Question 6When a company is listed on a stock exchange such as Frankfurt and it also wants to be listed on the London stock exchange, for example, does a new company have to be set up in the new country?

Financial policy : Question 6
When a company is listed on a stock exchange such as Frankfurt and it also wants to be listed on the London stock exchange, for example, does a new company have to be set up in the new country?