BabuK
JF-Expert Member
- Jul 30, 2008
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Capital Markets and Securities Authority has said the Tanzanian needs to be educated on what cross listed shares mean for them to effectively participate in the business.
Nasama Massinda CMSA newly appointed Chief Executive Director, made the remark on Wednesday at the official launch of the African Barrick Gold (ABG) share cross-listing at the Dar es Salaam Stock Exchange (DSE).
Many Tanzanians are now familiar with initial public offers, but I am not sure that there are many who are conversant with cross listed shares, she said.
The CEO said public education was of paramount importance for effective participation of Tanzanians in buying and selling of cross listed shares.
Tanzanians should be able to differentiate between IPOs and cross listing of shares which involves introduction of shares which are already trading at other stock exchanges to trade in a local exchange.
Massinda said generally it is normal practice to give discounts to the IPOs, which involve the listing and trading of shares of a company for the very first time at a stock exchange, in order to enable new investors to enjoy price appreciation.
She said in cross listing there are always no price discounts at the
time of first buying and no immediate expectation of price appreciation which could have been stimulated by a discount.
Buying and selling of cross listed shares by investors will thus tend
to be influenced by expectations of the performance of the company in its core business, she told the gathering.
Massinda urged investors to read the information memorandum and consult their investment advisors or licensed dealing members of the DSE before deciding to participate in the cross listed shares on the secondary market.
Barrick Gold, a Canadian Mining company announced February last year the creation of African Barrick Gold, which is now listed in London Stock Exchange and is now cross listed in the Dar es Salaam Stock Exchange (DSE).
SOURCE: THE GUARDIAN
Nasama Massinda CMSA newly appointed Chief Executive Director, made the remark on Wednesday at the official launch of the African Barrick Gold (ABG) share cross-listing at the Dar es Salaam Stock Exchange (DSE).
Many Tanzanians are now familiar with initial public offers, but I am not sure that there are many who are conversant with cross listed shares, she said.
The CEO said public education was of paramount importance for effective participation of Tanzanians in buying and selling of cross listed shares.
Tanzanians should be able to differentiate between IPOs and cross listing of shares which involves introduction of shares which are already trading at other stock exchanges to trade in a local exchange.
Massinda said generally it is normal practice to give discounts to the IPOs, which involve the listing and trading of shares of a company for the very first time at a stock exchange, in order to enable new investors to enjoy price appreciation.
She said in cross listing there are always no price discounts at the
time of first buying and no immediate expectation of price appreciation which could have been stimulated by a discount.
Buying and selling of cross listed shares by investors will thus tend
to be influenced by expectations of the performance of the company in its core business, she told the gathering.
Massinda urged investors to read the information memorandum and consult their investment advisors or licensed dealing members of the DSE before deciding to participate in the cross listed shares on the secondary market.
Barrick Gold, a Canadian Mining company announced February last year the creation of African Barrick Gold, which is now listed in London Stock Exchange and is now cross listed in the Dar es Salaam Stock Exchange (DSE).
SOURCE: THE GUARDIAN
