"I just don't understand why list at all if it is just going to be for a small amount? What is the great benefit? Everywhere I've read about ADRs (and I am far from expert) it says the main reason for an Australian company to do so is to easily tap into the US funding market."
well, that's never been the stated reason here - in fact, the opposite.
"That;s why I asked what other benefits to AJX?"
well, I would have to chase down the refs. but, I am pretty certain they have both stated publicly that it is the exposure to the larger market and the more well heeled market that would drive the SP to greater highs --------------- and, if the theory needs proving then I guess all we need to do is to look at the averages of PE's of US stocks to Aussie stocks
In Gavins --------- ?? Kohler interview I think it was (certainly was a visual interview anyway) - I think he said that we would list and 'eventually' become fully American - something like that - but, that was a ways down the track - probably years.
i thought the idea of ADR's was to give Americans an easy access to foreign shares - by trading on their own exchange - so, that's their benefit.
For us - a much bigger market and a much more liquid market - and, sure - if it was level 3's - a way to tap - but, he has consistently said - he doesn't want to tap - or at least, he doesn't want to dilute.
all from my memory and understanding.
AJX Price at posting:
54.0¢ Sentiment: Buy Disclosure: Held
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