I am not sure if this question has been asked before. I have just started purchasing stock and have the following question: I have interest in purchasing shares of a company that has been doing very well in a sector I am quite familiar with.(mining sector) The company has stated that they are looking at listing on the London Exchange in addition to the TSX which is where they are now as they feel there is alot of capital in London because there are no large Mining Companies there since Rangold was delisted due to the Barrick purchase. If they do list on the London exchange is there share dilution to existing shareholders or because it is a new listing is it a new class or set of shares? If it is a new set of shares how is the price determined? Will the price be substantially lower than the current price as it is at the top of the range in price I like to pay. ($55.60 per share right now) Sorry for the preamble I just want to learn and make sure there is a bit of background to my question.

  • 2
    Does this answer your question? Company stock listed in multiple exchanges?
    – D Stanley
    Aug 14, 2020 at 12:44
  • With mining shares it's relatively common for the buyer to actually get the actual (paper!) share certificates. (The few times I've owned shares of mining co's, I have done this.) Then, it is totally irrelevant about which markets they are listed on. The shares are the shares, and you hold them.
    – Fattie
    Aug 14, 2020 at 14:06

2 Answers 2


If they do list on the London exchange is there share dilution to existing shareholders or because it is a new listing is it a new class or set of shares?

Neither. You just have the option to sell the shares at that other exchange. There will always be a certain price difference, but arbitrageurs tend to poll this difference towards 0.


The answer is not clear until you look at the prospectus for the LSE listing.

Cross-Listing of Shares or Depository Receipts?

Many stocks "listed" on international exchanges are not actually listed there; instead, depository receipts are listed. American or Global depository receipts (ADRs/GDRs) hold 1 (or sometimes another amount) of shares in a depository receipt and pass-through dividends, capital gains, splits, etc.

Consider Sony. Sony on the Tokyo Stock Exchange (6758) has ISIN JP3435000009. However, the ISIN for Sony on the New York Stock Exchange (SNE) is US8356993076. The difference in ISINs reveals these are different securities: you cannot buy on one exchange and exit your position on the other exchange. You might try going to Sony's website to get some clarity, but the fact that SNE is an ADR is not mentioned on Sony's website. A little more searching suggests that all other international listings of Sony are for the US ISIN -- the ADR.

Are there firms with true cross-listings? Years ago IBM cross-listed shares on the Deutsche Börse, however there was little volume in the cross-listed shares.


Will a true cross-listing or a depository receipt be dilutive? That depends on if the firm issues new shares to raise more capital or just puts some current shares outstanding into a trust for depository receipts. Given that the firm mentioned there is much more capital in the London market, I would guess that they are planning to issue new shares. That would be dilutive; however, if the new capital helps them invest and grow faster, the diluted shares may eventually be worth more.

How WIll Prices Relate?

Finally, how will the prices relate? That depends on dividend policy, voting rights, and how many shares are in a depository receipt (if not a true cross-listing). If the voting rights and dividends are the same, the prices should be roughly the same after converting currencies.

For an example, you can look at Unilever traded on the LSE (ULVR, ISIN= GB00B10RZP78) in GB pence versus on the Amsterdam Euronext exchange (UNA, ISIN=NL0000388619) traded in Euros. The two listings have the same dividends and voting rights and tend to be priced almost identically.

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