can anyone advise me whether a dual listing in moscow for this gold mining company is a good or bad thing. The market seems to like the idea today and my gut feeling is that it opens the doors to more investors, but would be grateful for others thoughts
i hold a small long position
On balance I think it is probably a good thing.
A second listing would potentially open Petropavlovsk (LON:POG) up to a wider investor base adding market liquidity and greater access to future equity funding if required. At the margin, it may also make the company eligible for specialist emerging market funds/ETFs etc.. I think it might also help politically if it is seen to be supporting its home stock exchange.
There would be some incremental costs and possibly additional disclosure requirements (although it already has a full U.K. listing which require quite an extensive level of disclosure) but in the context of a £500m+ market cap these should be pretty incidental.
Gus.
