Switching stock market listing from one country to others. Is it easy for companies to list their shares on more than one exchange?

The financial globalization motivates companies list their stock abroad. There are several reasons for listing shares on more than one exchange. First reason is to raise capital. A cross-border listing can help a company target new shareholders. The second reason for listing on several exchanges is that it increases a stock's liquidity. Theirs shares become more accessible to global investors, allow investors decide sell or buy share in which market which markets. It will decrease the cost of capital. One of the reasons is to raise awareness of company. More people will know about the company if company lists on more than one market.

The cross listing is believed that it has a significantly positive impact on value of the cross-listed firm in the home market (Miller, 1999). For example, CRH, one of the Ireland’s biggest building material companies is to move its primary stock market listing from Dublin to London, while CRH shares will retain a secondary listing in Dublin.  Shares in the Irish-headquartered group rose 4 percent on the expectation that index funds would now buy its shares (Smyth, 2011).  Why CRH choose London stock exchange as primary exchange instead of Irish? Obviously, London stock exchange is the largest international equity market. The benefits and opportunities come from London stock exchange are more than from Dublin stock exchanges such as more well-known, more investors, more regulated market and etc.  CRH chief executive Myles Lee said: "We believe that these listing arrangements are in the best long-term interests of CRH and will increase the group's attractiveness to a wider international investor base’’. Of course, CEO of one company will say positive thing about organization. However, we cannot deny the positive impacts of listing on London stock exchange.  Furthermore, CRH tends to entry into benchmark FTSE 100 index. It would open a new opportunities for CRH when it becomes a FTSE 100 companies.

In another case, could companies list their shares abroad as expected? Greencore plc, food firm, cancels its listing on the Irish Stock Exchange and move to London stock exchange instead of keeping listing shares on Irish Stock Exchange. Why Greencore plc listed in London stock exchange stead of Irish stock exchange?  It is said that the major activities of Greencore such as its turnover, operating profits and producing assets are held in UK. Almost Group’s shares are now owned by overseas investors. In 2011, the company completed the acquisition of Uniq plc, which has further increased the proportion of its activity in the UK. Why doesn’t Greencore plc list on both London stock exchange and Irish stock exchange? Is it what company want? It is not easy as expected. In order to list on London stock exchange, company has to fulfil the requirement. In Greencore’s case, company has to reach a certain liquidity threshold on London stock exchange in order to listing on that exchange (Irish times, 2011). Unlike CRH, it already has amount of liquidity in London, almost Greencore’s liquidity is in Dublin. In order to listing shares on London stock exchange, Greencore has to move its stock from Dublin to London.

More opportunities more risks and threats there are. In both cases, the moving stock exchange will create more opportunities. On another hand, companies have to face more threats. Companies must comply with more restricted regulator requirement. For instance, company must meet transparency requirement, provide more released information. The cost of listing is also different. Companies must pay higher professional fees.

In conclusion, before listing in stock exchange or switch to greater exchange, company should take the consideration. London stock exchange provides a practical guild to listing which contains major self-questions. Those question help companies know whether they are already to list or not.