Couple of thoughts swirling in my minds regarding the lack of ADS trading last night so I did a bit of thinking and put it down as below. While doing the reading what caught my eye was the first point so included here.
1. NASDAQ listing type IHL is listed on the ‘Nasdaq Capital Market’ - @thevinnys or others can correct me if I am reading this incorrectly instead of 'Nasdaq Global Market'.
(Source: https://www.sec.gov/Archives/edgar/data/0001873875/999999999722000557/filename1.pdf)
2. ADS trading
Additional shares approved by IHL SH on 19/9/2021=180 Million IHL shares
(Source: https://newswire.iguana2.com/af5f4d73c1a54a33/ihl.asx/3A584039/IHL_Update_on_Nasdaq_Listing)
The 180 Million IHL approved by us created a minimum of 7.2 Million IXHL ADS (25 IHL= 1 IXHLADS).
A total of 50 Million IXHL ADS have been registered with NASDAQ
(Source: https://www.sec.gov/Archives/edgar/data/1471515/000091957422001695/d9170912_f6-a.htm)
50 Million IXHL ADS = 1.25 Billion IHL shares - not all on issue as, per the recent half yearly report there are 1,147,811,124 shares on issue.
(source: https://newswire.iguana2.com/af5f4d73c1a54a33/ihl.asx/3A588705/IHL_Half_Yearly_Report_and_Accounts)
(So there is a slight gap between 1.25 Billion IHL shares (equivalent of 50 Million IXHL ADS) and the half-yearly reported, nearly 1.15 Billion IHL shares, which is about 10 Million IHL shares. Forgive my ignore/ understanding but I don’t know how to account for it. But precision is not the purpose of this post.)
We also saw a big cross trade of 15 Million IHL shares after market hours (on exchange cross) on 11/2 which could have been bought by DB. If this is not DB then how does DB have trades to back-up the ADS?
(Source:https://hotcopper.com.au/threads/general-discussion.5330178/page-12117?post_id=59516603)
What’s the point of this IHL SOI vs ADS thinking? I believe there is sufficient IHL shares held by DB (at least the 15 Million bought on 11/2) available to be purchased as ADS from DB. Despite this why there was no trade on 28/2/2022 on NASDAQ, I do not understand and I am hoping someone will shed some light on this.
The marketing/ roadshow done pre-listing could have resulted in the instos buying IHL on ASX which may have resulted in the recent run up. However retail investors in the US, and other instos probably are yet to become aware of IXHL and trade in them. As I posted above, I think there needs to be marketing to retail investors and news flow which will promote this awareness.
However, I do not yet understand why an US investor (retail or insto) who already owns the ASX IHL would convert to a ADS? That still would likely be minuscule vs the actual trading in ADS that is expected in coming days/ weeks.
All IMO... I could be very very wrong in my thinking and I am sure some of you will set me on the right path. Thanks.
