this post was submitted on 02 Sep 2025
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What happens to the value of a company when it IPOs in a different country? (lemmy.world)
submitted 6 months ago by pdxfed@lemmy.world to c/stocks@lemmy.world
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I assume the company, regardless of its home nation, would issues new shares for the new market and the income from equity issued would be added to the overall corporate balance sheet.

I ask; isn't this essentially, for current shareholders, a dilution? While opening new markets is generally positive for growth, existing shareholders get no stake in the new issued shares right? Existing shares they have don't gain in value at all from the price of another trade/exchange value right? Are there share classes where maybe new issuance would actually make them increase in value?

Own shares in a foreign market that I think will expand to the US soon and wanted to make sure I understood impact.

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[–] lurch@sh.itjust.works 3 points 6 months ago

the shareholders usually get to vote on it, so it's their decision. there aren't always new shares emitted, but the available ones just become tradable there. if there are new shares, the current shareholders may get "preference shares" to reduce the financial impact, but they may not come with votes.