WHY A DUAL-LISTING ON fRANKFURT STOCK EXCHANGE IS IMPORTANT

The Frankfurt Stock Exchange is the live stock exchange of the Frankfurt Stock Exchange (FWB), which is owned by Deutsche Börse AG. Deutsche Börse AG also operates the electronic trading platform and the futures exchange Eurex and is a majority owner of Tradegate exchange – which generally sees the highest volume for dual-listed companies on the German trading exchanges. This is the first step for a dual-listing of a global corporate in Germany.
 
There are over 13,000 dual-listed companies on the Frankfurt Stock Exchange and around 500 German companies with a primary listing. The quotation board is where companies listed on a recognised global exchange can be traded through a market maker system with no regulatory or compliance obligations. 
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All companies whose shares are already listed or included at another international or domestic trading venue and apply for admission to the Open Market are included in the Quotation Board.

For dual-listed companies the market-makers sets the buy/sell with reference to a company’s home exchange prices, trades on their own account, guarantees best prices and a market for the company’s shares on Frankfurt Stock Exchange.

In this era of low liquidity on home exchanges (LSE, ASX, TSX and CSE) companies should consider maximising their home exchange listing and utilising this asset to dual-list on Frankfurt Stock Exchange where dual-listing is relatively inexpensive and affordable and creates opportunities to develop a global investor base.

in 2024 some of the key sectors to engage with European retail investors are technology, biotech, medtech, uranium, critical raw materials and drone technology.

ASX listed company Droneshield (ASX: DRO) sees extraordinary levels of trading on Frankfurt Stock Exchange and German trading exchanges such as Tradegate with about 20% of ASX volumes in Germany. Quality Uranium stocks from Australia and Canada have performed very strongly in 2024. 

There are 4 main benefits for companies of a dual-listing in Germany.

1. Investors in Europe can trade shares cheaply without highout high transaction costs, Generally most major EU brokers charge more for ASX, TSX or LSE trades than they do for shares quoted on Frankfurt Stock Exchange. There is also the opportunity for a listing to be accepted by one of EU's major neobrokers such as Trade Republic where trades average €1 a trade. Trade Republic has over 2 million customers in Europe.

2. Companies can diversify their investor and shareholder base. A globally engaged and diversified shareholder base is an asset and de-risks a company from having all investors in one geographic location.

3. Companies can take advantage of marco themes and trends that may not be applicable in home exchange country. For example, in Europe the Ukraine war and drone technology is a major issue and theme that influences retail investment decisions. Hence the demand and interest in companies such as Droneshield this year.

4. European investors can trade in their own time zone.

contact us today to find out how a Frankfurt Dual Listing can create positive shareholder value.