Anyone have predictions, commentary, concerns, optimism about this one? It looks like a much needed sale for SoftBank. Every time I've heard SoftBank in the last, like, five years, it's always how...
Anyone have predictions, commentary, concerns, optimism about this one?
SoftBank recently bought the 24.99% stake in Arm that it didn’t own outright from its Vision Fund unit, reportedly at a valuation of more than $64 billion. That’s twice the $32 billion SoftBank paid for Arm seven years ago.
It looks like a much needed sale for SoftBank. Every time I've heard SoftBank in the last, like, five years, it's always how their gigantic investments are losing money. WeWork is one such painful investment this TechCrunch article mentions. Although I wonder if that's not entirely true, and that impression is partly a product of what makes the headlines.
SoftBank is massive and takes risks, but they also own a lot of major assets in Japan. They're one of the top three companies there. They jointly own LINE, which is hands-down the most used...
SoftBank is massive and takes risks, but they also own a lot of major assets in Japan. They're one of the top three companies there.
They jointly own LINE, which is hands-down the most used messaging platform in Japan. They're also one of the major cellular carriers there, and have stakes in European and US carriers.
I didn't realise listing on multiple stock exchanges was an option. How would this work exactly? I've done some cursory googling but it's not super clear to me. A UK company listed on the LSE can...
I didn't realise listing on multiple stock exchanges was an option. How would this work exactly? I've done some cursory googling but it's not super clear to me.
A UK company listed on the LSE can also list on the NASDAQ?
Would this just be for an American subsidiary or for the whole company?
Do they dilute the shares in the UK to create shares to exchange in the US?
What happens if the value of the shares in the UK is lower or higher than the ones in the US?
If someone wants to "buy out" the company would they have to pay shareholders in both markets?
Does this affect corporate governance and regulations - i.e. will they have to comply with laws and regulations in both countries? What happens if the two sets of regulations conflict?
Aside from the opportunity to sell shares to more investors, and the increased number of trading hours, what makes this worthwhile? It's not as if it's hard for Americans to buy UK stocks.
This is called dual listing. Many foreign companies like doing this because it means they can raise more capital since they can sell more shares in more places if they want. Typically (at least,...
This is called dual listing. Many foreign companies like doing this because it means they can raise more capital since they can sell more shares in more places if they want.
Typically (at least, for US exchanges) there will exist some entity in the US which holds a bunch of those foreign shares. The shares which trade on the US exchange are not the true shares, but an agreement that you are entitled to a one of those foreign shares held by the entity. This is called an ADR.
It's easier legally and logistically to do this rather than for the actual company to list in the US, especially if they don't have any business in the US.
The shares on all exchanges, regardless of where they are, will be the same price up to foreign exchange. If they were priced differently, then an arbitrageur would sell the more expensive one and buy the cheaper one and not only make riskless profit, but drive the prices back to equilibrium in the process.
Anyone have predictions, commentary, concerns, optimism about this one?
It looks like a much needed sale for SoftBank. Every time I've heard SoftBank in the last, like, five years, it's always how their gigantic investments are losing money. WeWork is one such painful investment this TechCrunch article mentions. Although I wonder if that's not entirely true, and that impression is partly a product of what makes the headlines.
SoftBank is massive and takes risks, but they also own a lot of major assets in Japan. They're one of the top three companies there.
They jointly own LINE, which is hands-down the most used messaging platform in Japan. They're also one of the major cellular carriers there, and have stakes in European and US carriers.
I didn't realise listing on multiple stock exchanges was an option. How would this work exactly? I've done some cursory googling but it's not super clear to me.
A UK company listed on the LSE can also list on the NASDAQ?
Would this just be for an American subsidiary or for the whole company?
Do they dilute the shares in the UK to create shares to exchange in the US?
What happens if the value of the shares in the UK is lower or higher than the ones in the US?
If someone wants to "buy out" the company would they have to pay shareholders in both markets?
Does this affect corporate governance and regulations - i.e. will they have to comply with laws and regulations in both countries? What happens if the two sets of regulations conflict?
Aside from the opportunity to sell shares to more investors, and the increased number of trading hours, what makes this worthwhile? It's not as if it's hard for Americans to buy UK stocks.
This is called dual listing. Many foreign companies like doing this because it means they can raise more capital since they can sell more shares in more places if they want.
Typically (at least, for US exchanges) there will exist some entity in the US which holds a bunch of those foreign shares. The shares which trade on the US exchange are not the true shares, but an agreement that you are entitled to a one of those foreign shares held by the entity. This is called an ADR.
It's easier legally and logistically to do this rather than for the actual company to list in the US, especially if they don't have any business in the US.
The shares on all exchanges, regardless of where they are, will be the same price up to foreign exchange. If they were priced differently, then an arbitrageur would sell the more expensive one and buy the cheaper one and not only make riskless profit, but drive the prices back to equilibrium in the process.