QUOTE(Kar Weng @ Mar 12 2021, 02:37 PM)
Hi sifus sekalian, I’ve been wondering, how does TG’s eventual listing in HK’s market affect its value? Why are investors shunning from the stock because of this decision?
Does a dual listing dilute value (like PP)? Or it has 0 effect on what’s trading in Bursa? 1st time encountering this so it’d be great if someone can share some good insights. TIA!
Me not sifu, but here is my understanding.
HK Listing is primary dual-listing. From Google, primary listing is listing of new shares. So, new TG shares will be available to HK, adding to current number of shares, thus dilution effect.
OTOH, SGX listing is secondary dual-listing. Secondary listing inSGX means selling existing shares to be listed in SG. No dilution happens.
I made a huge blunder in not finding out more about the Hong Kong listing. If only I knew about the difference of primary & dual listing then...... Mr Market ady knew what's gonna happen then, hence the market reaction.
P.S. I really wonder why the need for primary listing? HK listing must only be primary listing? I don't know. If TG changes it to secondary listing, perhaps share price will rebound. But unlikely, as TG has ady submitted application.