Stock exchanges need to find mojo
Stock exchanges in the region are offering dual class share IPOs as a way to stay competitive. Just how effective is this as a competitive strategy?
Add BT as a preferred source
AFTER years of debate, both Singapore Exchange (SGX) and Stock Exchange of Hong Kong (SEHK) recently amended their listing rules, allowing companies to list with dual-class share (DCS) structures. While it is not a decision that they have taken lightly, it is one that has been dogged by controversy.
Much of the argument in favour of dual-class shares focuses on the success of DCS companies such as Google and Facebook, and of course, the decision by Alibaba to list in New York rather than Hong Kong.
A company with a DCS structure typically has two classes of shares, each class carrying different voting rights. The class of shares with more voting rights ("super voting shares") are usually held by the company's founders and senior executives, allowing them a high level of control in the company with a relative low level of equity ownership. Ordinary shares, usually carrying one vote per share, are listed and sold to public investors.
Share with us your feedback on BT's products and services
