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.