As one of the world’s oldest markets, London is as much a destination for a dual listings as it is a primary market for companies with global ambition. Equally, Frankfurt remains a gateway for access to liquidity and broader investor exposure – and collectively this is proving a draw for Canadian and Australian companies at an increasing rate. It’s not surprising, given the Frankfurt and London markets have a long track record – offering deep pools of institutional capital, high liquidity, and sophisticated long-term investors.
Access to longer-term capital is a common driver for expanding market presence, but it can also be about developing an international profile and gaining greater liquidity for existing shareholders. Using our extensive network of investor and banking institutions, we build an ecosystem around listed companies that want to create a presence in the European and London markets, to broaden shareholder spread and strategic partnerships, ultimately providing those companies with access to international pools of capital.
The AIM market was launched in London to help smaller-mid-cap companies raise equity and engage with investors, and with over 3,000 companies from around the world having listed in London to date many of these come from international roots. Via Frankfurt those same companies can also access a broader European support base. For those companies already listed on exchanges like the ASX or the TSX, adding a Frankfurt or AIM listing can accelerate access to a new pool of liquidity, active in a separate time zone even when the home exchange is out of hours, opening doors to a global investor base.
The international investment profile of Frankfurt and London is increasingly geared toward advancing ESG, which in itself is a major attraction for resources and mining groups that want ensure they are not just making money for investors but also demonstrating commitment to a better world. With major investor conferences scheduled for this month both in Frankfurt and London, we expect this will be integral for strategies going into next year.
The way in which Canadian and Australian companies can approach these markets is also flexible. While it is helpful to raise money on listing to create local liquidity, various dual listed companies have chosen to build up a local profile through research and PR, so that when they are ready to raise funds the investment community will be more aware of their relevant activities and keener to invest. We continue to welcome international business growth!