Dual Listing

Updated on April 4, 2024
Article byRutan Bhattacharyya
Edited byRutan Bhattacharyya
Reviewed byDheeraj Vaidya, CFA, FRM

What Is A Dual Listing?

Dual listing is a process that involves listing of a company’s shares on at least two exchanges. Companies may opt for dual listing for different benefits, such as better access to capital, higher liquidity, and the ability to raise additional capital.

Dual Listing

You are free to use this image on your website, templates, etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Dual Listing (wallstreetmojo.com)

Businesses can get more trading time if the exchanges where their shares trade are located in distinct time zones. A few exchanges have different listing categories for organizations looking to list their shares via this process. Each category has its unique set of benefits and requirements. Dual-listed securities can gain increased market visibility, leading to increased media coverage.

Key Takeaways

  • Dual listing refers to a procedure through which organizations can list their shares on different stock exchanges.
  • A noteworthy disadvantage of dual listing is that a company has to meet the regulatory and listing requirements associated with both stock exchanges.
  • There are various benefits of dual listing. For example, more investors become aware of the company. Additionally, it allows an organization to get access to more funds, thus enabling it to increase its investment base.
  • A key difference between dual and secondary listing is that the listing criteria of the exchanges in the case of the latter are similar.

How Does Dual Listing Work?

Dual listing refers to a procedure that allows investors to purchase shares of a company on multiple exchanges. It enables companies to raise more capital and grow their investment base. Moreover, it provides companies with access to markets outside its home country. A dual-listed organization is formed of at least two legally registered corporations operating as one business. This type of listing is appealing to various non-United States companies owing to the country’s capital markets depth.

Foreign companies may look for an ordinary listing on exchanges like the NYSE (New York Stock Exchange) or the NASDAQ. That said, one must remember that fulfilling the listing criteria of such exchanges is challenging. Besides meeting the listing requirements, foreign companies must fulfill the requirements of the regulatory bodies, arrange for the settlement and clearing of the trades, and restate their financials.

The most popular way to dual list a company on stock exchanges in the U.S. is via an ADR or American Depository Receipt. An ADR offers U.S. investors a way in which they can buy non-U.S. corporations’ shares without the complications associated with purchasing them via a home stock market. In other words, it represents the company’s foreign shares held by a custodian bank in trust within the geographical boundaries of the company’s home nation. It carries identical rights to their shares.

Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series)

–>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​Financial Modeling & Valuation Course Bundle​ (25+ hours of video tutorials with step by step McDonald’s Financial Model). Unlock the art of financial modeling and valuation with a comprehensive course covering McDonald’s forecast methodologies, advanced valuation techniques, and financial statements.


The reasons behind listing on multiple stock exchanges are as follows:

  • Increased Reliability: Trading on different exchanges, including one in the United States, raises the daily trading volume of a stock. As a result, a stock’s price becomes more reliable. In other words, as more market participants buy and sell the stock, the less likely it will be mispriced.
  • More Trading Time: When a company’s shares are listed on exchanges in different time zones, market participants can trade the shares more during a 24-hour timeframe.
  • Increased Liquidity: Listing on multiple stock exchanges raises the traded stock’s liquidity, enabling several market participants to buy and sell the financial instrument.
  • Access To A More Substantial Capital Base: A reason why an organization may resort to this process is the chance to raise additional funds. It offers companies access to a larger investment base.


Let us look at a few dual listing examples to understand the concept better.

Example #1

Suppose ABC Inc. wants to go public. It wishes to list its shares on two stock exchanges in different countries. To complete the dual listing process, it meets the regulatory criteria set by the capital market regulators in both countries. Moreover, it made various disclosures to fulfill the listing requirements of each nation. Once the two initial public offering subscription processes were over, the shares of ABC were listed on both stock exchanges.

Example #2

In July 2023, JBS announced its proposal to list the company shares on the NYSE and the Saul Paulo Stock Exchange. According to the chief executive officer or CEO of JBS Global, Gilberto Tomazoni, this dual listing will accelerate the business’s capacity for growth and diversification into more value-added and branded food products. Moreover, he believes that this strategy will reduce the organization’s cost of capital and increase shareholders’ returns.

Pros And Cons

Let us look at the benefits and limitations of this process.


  • It can lead to increased liquidity, which generally minimizes the bid-ask spread.
  • This process may increase a company’s awareness among market participants. This, in turn, increases awareness among consumers.
  • If a company lists its shares on multiple stock exchanges, it increases the time for market participants to trade the financial instrument every day.
  • Another key benefit of the dual listing is that it increases the possibility of raising more capital.


  • A key disadvantage of the dual listing is that companies have to spend additional time to meet another nation’s accounting regulations and listing requirements.
  • When listing shares on a new exchange, the corporate officials usually need to spend significant time communicating with investors and investment banks.

That said, one must remember that the added expenses incurred and the time spent to list shares on another exchange might turn out to be minimal, considering the extra capital raised through this process.

Dual Listing vs Secondary Listing

The differences between dual listing and secondary listing are as follows:

  • In the case of secondary listing, the exchanges’ listing requirements are similar. On the other hand, the listing requirements are typically different in the case of dual listing.
  • If a company opts for a secondary listing, the geographical reach of the two exchanges does not differ broadly. That said, the geographical reach significantly varies in the case of a dual listing.
  • In the case of dual listing, all stock exchanges are primary. On the other hand, if an organization opts for a secondary listing, it lists its shares on exchanges other than the primary one.

Frequently Asked Questions (FAQs)

1. Is dual listing good for the share price?

On a micro level, this type of listing does not impact the share price. The share prices on different exchanges generally remain the same if one considers the transaction costs and currency differences. Nevertheless, one may spot price divergences occasionally, especially when trading hours are not overlapping, and a significant price movement occurs in a market.

2. What companies have dual listings?

Some popular companies around the world with shares listed on exchanges in multiple countries are as follows:
– Investec (listed in the United Kingdom and South Africa)
– Rio Tinto (listed in the United Kingdom and Australia.
– Unilever (listed in the United Kingdom and the Netherlands)
– Brambles (listed in the United Kingdom and Australia)

3. How does dual listing affect market cap?

Since listing shares of multiple exchanges does not impact share price on a micro level, it has no impact on the market capitalization of a dual-listed company.

4. How do you calculate market cap in the dual listing?

One needs to multiply the total number of outstanding equity shares by the current stock price to compute it. Also, one must ensure to consider the currency differences when computing.

This article has been a guide to what is a Dual Listing. Here, we compare it with secondary listing, and explain its pros, cons, reasons, and examples. You may also find some useful articles here –

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *