Nation Media, a listed company on the Nairobi Stock Exchange, has cross-listed on the Rwanda Stock Exchange. It is also cross-listed on the Uganda Securities Exchange and the Dar es Salaam Stock Exchange.
As a cross listed company what are the basic investment data information tools to employ?
- Online charts of the share prices and volumes for the shares traded in each country in the currency of the country and volumes related to the shares traded in THAT country. WHY? if investors are going to trade shares they need to know what the likely market is.
- Share chart with prices and volumes for the whole company in the home currency.
- Liquidity statistics of trading in each market.
- Full implications of how the trading system works cross border – what to do when and how and who to see and when
- A summary of the communications practices employed to ensure that information is released broadly and simultaneously in each market.
- Statistics on cross border trades in shares – volumes and dates.
- A website APP that provides an indication of the arbitrage opportunities implied from the differing share prices in each market.
- An overview of the number of shareholders in each market (this information is available at the click of a button for share registrars).
- An overview of the operations in each market of the listed company.
- The contact details of the registered brokers and share registrars to contact in case of a query.
- Physical address where annual reports (physical ones) can be requested or collected.
- An overview of the primary reporting regulations applicable to the company. For example Kenya now permits listed companies to ignore sending annual reports to shareholders but Tanzania does not allow this – which country rules?
There is no evidence to suggest that the cross-listings in East Africa have any substance to them from a market trading or capital markets perspective. I may be wrong but wouldn’t it be nice to have some stats.