Since the introduction of the dual-listing law in Israel in 2000, the share price of Israeli companies dual-listing on both Nasdaq and the local market leaped by 8.5 percent on average, while volume of trade rose by 97%, following a dual-listing on the Tel Aviv Stock Exchange.
According to a survey carried out the Israel Securities Authority among 30 of the 100 Israeli companies listed on Nasdaq that dual-listed, identified two unique characteristics for the advantage. On the one hand, it said, the companies did their first public offering in foreign markets followed by a dual-listing on the local market and not vice versa as is common in global capital markets. Secondly, it said, the companies wishing to dual-list on the TASE enjoyed the simple requirement of a listing application and approval by the TASE, while being exempt from any other approvals and listing fees generally levied by other exchanges.
With the dual-listing law, companies traded on US markets are able to do a second listing on the TASE with no additional regulatory requirements. The process saves these companies the costs of reporting to two different regulatory systems. In addition, the TASE decided to exempt dual-listed companies from listing rules and fees and maintenance regulations.
According to surveys carried out among European managers regarding the benefits of dual-listings in foreign countries, only 60% of those questioned found that the benefits of dual-listings were overriding the costs involved. The main benefit was attributed to the increase in the volume of trade, while at the same time the impact on the share price was negative.
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