Factors to consider before dual listing your company
How does Upstream, a MERJ Exchange market, address common hurdles issuers face when dual listing
By Fernanda De La Torre and Vanessa Malone
In recent discussions, we’ve delved into the strategic benefits that dual listing offers to companies aiming to appeal to international investors. This week, we’re shifting our focus to the essential factors that issuers should consider when contemplating dual listing and how Upstream, a MERJ Exchange market, addresses these challenges.
- Regulatory Compliance: Meeting regulatory requirements across multiple jurisdictions can be intricate and expensive. With each stock exchange imposing its own listing rules and compliance obligations, issuers can face hurdles. However, on Upstream issuers maintain their current listing, and without any additional regulatory filings, these shares can be dual listed on Upstream. By seamlessly integrating with existing disclosures, issuers can gain access to global investors without any heavy lifting.
- Costs: Dual listing often comes with substantial expenses, ranging from listing fees, annual fees, and ongoing compliance costs. Below you can find a chart on the average listing and application fees associated with a few major stock exchanges. All of these fees don’t take into consideration the legal fees and auditing fees associated. Upstream’s listing and annual fees are significantly less than other traditional exchanges offering U.S. issuers dual listing for just $10k and international issuers for $5k.
- Upstream/ MERJ: $5–$10,000 listing fee + $0 application fee (listing fee is inclusive of application fee)
- OTCQX: $25,500 annual fee + $5,000 application fee¹
- AIM/ LSE: ~$63,500 listing fee* + $19,098 application fee²
- Nasdaq: $50–$75,000 listing fee+ $1,000 application fee³
- TSX: $10-$200k listing fee + $10,000 application fee⁴
- NYSE: $300,000 listing fee + $25,000 application fee⁵
*LSE charges based on market cap, $63,558 is the approximate admission cost for a company with a market cap of £50 million (approx. US$63.66 million).
Upstream’s listing fee includes the application fee along and comes with over $100k of IR services through our media community. This affordable option opens doors to a global investor base for a cost equivalent to a global press release.
3. Market Fragmentation: Fragmented trading and liquidity are common concerns with dual listing. However, Upstream doesn’t compete with local markets but complements them by opening up access to foreign retail investors that typically couldn’t reach your company’s securities through your primary markets, all in a streamlined manner. While it’s typically difficult for global retail investors to access U.S., Canadian, and international securities without going through a cumbersome process, Upstream’s trading app features streamlined onboarding, expanded trading hours, and funding with credit/debit card, PayPal and USDC to bridge the gap.
4. Currency Risks: Diverse listing currencies introduce currency risk, which may impact financial performance and investor returns. To mitigate this risk, Upstream deals in USD and facilitates multiple funding options, including PayPal, credit, debit, and USDC, offering flexibility and convenience to investors.
5. Investor Communication: Effective communication across diverse investor bases is paramount. Upstream puts marketing at the forefront of its listings, offering a comprehensive marketing package and investor relations support, ensuring timely and consistent information dissemination. In addition to our media community which consists of groups like IBN (InvestorBrandNetwork), InvestmentPitch Media, Spotlight Growth, New to the Street, ADVFN, Mission Matters, and The Average Joe, Upstream also goes beyond this elevated investor relations (IR) approach by offering shareholder engagement tools powered by smart-contract technology. Issuers can reward shareholders and potential new shareholders with digital collectibles, digital coupons that can be redeemed for company product, services, and more.
Dual listing continues to be used as a growth strategy for issuers as they go global. It’s important to think about regulatory compliance, costs, and management resources inherent in this process. With our streamlined approach and comprehensive support services, companies can leverage dual listing as a strategic tool to access global capital markets and drive sustainable growth.
Interested in listing your company? Get started at https://upstream.exchange/GetListed or reach the team at hello@upstream.exchange.
Sources: 1 OTCQX | 2AIM/LSE(BakerMcKenzie)| 3 Nasdaq | 4 TSX | 5 NYSE(BakerMcKenzie)
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Upstream is a MERJ Exchange market. MERJ Exchange is a licensed Securities Exchange, an affiliate of the World Federation of Exchanges, a National Numbering Agency, and a member of ANNA. MERJ is regulated in the Seychelles by the Financial Services Authority, https://fsaseychelles.sc/, an associate member of the International Association of Securities Commissions (IOSCO). MERJ supports global issuers of traditional and digital securities through the entire asset life cycle from issuance to trading, clearing, settlement, and registry. It operates a fair and transparent marketplace in line with international best practices and principles of operations of financial markets. Upstream does not endorse or recommend any public or private securities bought or sold on its app. Upstream does not offer investment advice or recommendations of any kind. All services offered by Upstream are intended for self-directed clients who make their own investment decisions without aid or assistance from Upstream. All customers are subject to the rules and regulations of their jurisdiction. By accessing the site or app, you agree to be bound by its terms of use and privacy policy. Company and security listings on Upstream are only suitable for investors who are familiar with and willing to accept the high risk associated with speculative investments, often in early and development-stage companies. U.S. persons may not deposit, buy, or sell securities on Upstream. There can be no assurance the valuation of any particular company’s securities is accurate or in agreement with the market or industry comparative valuations. Investors must be able to afford market volatility and afford the loss of their investment. Companies listed on Upstream are subject to significant ongoing corporate obligations including, but not limited to disclosure, filings, and notification requirements, as well as compliance with applicable quantitative and qualitative listing standards.
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