PNGX has created a new market that will allow local investors to invest in companies that are listed overseas.
The rules of many foreign stock exchanges prevent their companies from listing their shares to trade on other stock exchanges. For example, shares listed on the New York Stock Exchange cannot be directly listed and traded in PNG. For investors in PNG this means they cannot easily buy shares in those companies even if the companies have operations and businesses in PNG.
To help local investors participate in these opportunities, PNGX has created a new market that allows local investors to invest in companies that are listed overseas but not allowed to directly list in PNG. The new market will trade investments called PETS Depository Interests or PDIs.
PDIs replicate all the characteristics of a share. If you own a PDI listed on PNGX, you will be entitled to all the same benefits and privileges as though you hold the actual foreign-listed shares. You will be able to vote at the company’s annual general meeting, participate in new share issues, and receive dividends. You can also ask to have your PDIs converted back to ordinary shares in the foreign company at any time. Although, if you do this, you will not be able to trade the shares in PNG.
Under the terms of a scheme of arrangement approved by Newcrest and Newmont shareholders and the courts in PNG, America and Australia, all PNG-based shareholders in Newcrest will have their shares replaced with Newmont PDI’s. For each share you own in Newcrest, you will receive 0.40 Newmont PDIs. These PDIs will carry all the same entitlements as Newmont shares listed in New York but have the added benefit that they can be owned and traded in PNG on the PNGX market. You can ask the Newmont share register to convert your Newmont PDIs to Newmont shares but remember, the shares cannot be traded in PNG.
In the coming weeks, Newcrest shareholders will receive statements telling them how many Newmont PDIs they hold after the merger of Newcrest into Newmont. These statements are important documents and should be kept in a safe place, as they are necessary to give to your stockbroker if you want to trade your Newmont PDIs.
If you are a Newcrest shareholder and you do not receive any information regarding your holding and merger of Newcrest into Newmont, you should immediately contact the Newmont share register as follows: Computershare Limited – Global Transactions Team, PO Box 103 Abbotsford, Victoria 3067 Australia, Email: gtuau@computershare.com.au
For those who do not hold Newcrest shares, you will be able to buy Newmont PDIs on PNGX and receive all the benefits of owning Newmont shares listed in New York.
Remember, shares and PDIs in PNG can only be traded by authorised PNGX stockbrokers. If you need assistance with trading, you should contact a licenced PNGX stockbroker at either JMP or Kina Securities.
Investing in shares on PNGX is an ideal way to grow your wealth by investing in PNG.
PNGX recommends discussing your investment objectives and needs with a stockbroker or qualified financial adviser. In PNG, you can either contact JMP Securities Limited (enquiries@jmpmarkets.com) or Kina Securities Limited (wealth@kinabank.com.pg).
The information in this article is general in nature and you should take care to inform yourself about the specific characteristics of a particular investment before making a decision to invest in it.
By following these articles and reading the information available on the PNGX website (www.pngx.com.pg) or following PNGX on LinkedIn or Facebook you can learn more and build your wealth by investing in PNG.
