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Raising capital in global equity markets can be difficult, especially when barriers make crosslisting on foreign...

Raising capital in global equity markets can be difficult, especially when barriers make crosslisting on foreign exchanges impractical. Discuss one of the alternatives to crosslisting that can enable firms to sell their shares to foreign investors.

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Answer #1

Private placement offering the equity shares under SEC - 144A to a small selective group of Institutional Investors for raising funds from the foreign investors or to sell off the same could stand as one of the alternative sourcing other than crosslisting. Private placement does not change the share price information and doesn't have any impact on rise and decline of the market price of the share.

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