Summary
- FYI Resources Limited (ASX:FYI) has started the process to seek quotation on the OTC market in the US.
- The Company will retain its primary listing on the ASX, with the OTCQX market as compliance or secondary listing.
- FYI has noted a substantial surge in its overall European-based trading over the past several months.
Marking a major step towards the US listing, FYI Resources Limited (ASX:FYI) has initiated the process to seek quotation on the “over the counter” (OTC) market in the US as a secondary listing. The Company has started this process following significant interest from the North American investors who are actively interested in the power storage industries and the electric vehicle (EV) sector.
FYI will maintain its primary listing on the Australian stock exchange, with the OTCQX as compliance or a secondary listing. Notably, the OTCQX market trades the same class of ordinary share to the Company’s ASX traded stock.
The FYI OTCQX quoted securities of shares will be traded “over-the-counter” through a dealer network as against trading on a centralised exchange. Besides, the Company’s shares will not be a derivative or synthetic stock.
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FYI further informed that it has noted increased trading volumes via the European trading platforms over the past several months.
Proposed US Listing
The commencement by FYI in establishing a quotation on the OTC market in the US represents a key development for the Company.
The OTCQX is the highest tier in the OTC markets operated by OTC Markets Group. This platform provides an electronic quotation and trading service that will improve the liquidity and visibility of FYI securities besides boosting its accessibility for prospective investors. The investor interest comprises ESG funds, equity funds and family offices.
In the recent past, FYI has received substantial interest from the North American investors due to the following reasons:
- Its progress on the fully integrated & innovative HPA (high purity alumina) strategy.
- The demonstrated value delineated in the Company’s DFS, published in March 2020.
- FYI drawing high calibre corporate plus counterparty interest.
- Leverage offered by HPA in the growing power storage and EV markets.
- Probable opportunities and partnerships in North America.
Interestingly, investors’ interest has been soaring in the US for the EV industry and its supply chain commodities (including HPA). This seems to have been fuelled by President Joe Biden’s plan to replace the government’s fleet of 645K vehicles with EVs. Biden’s plan is a part of the Democrat Party’s massive USD 1.9 trillion post-coronavirus stimulus funding and investment into helping the US industries, comprising battery-related development.
Improved European Trading
FYI’s overall European based trading has tripled over the past several months amid increased trading volumes through Frankfurt and Munich listings.
The Company trades on OTC markets on the Munich Stock Exchange under the code “SDL.M” and the Frankfurt Stock Exchange under the code “SDL.F”. These listings have provided valuable exposure for FYI to European investors.
The Frankfurt Stock Exchange is the third largest exchange-trading market in the world, behind the NYSE (New York Stock Exchange) and NASDAQ. The Frankfurt listing helps to boost FYI’s investor reach and enhances the Company’s exposure to European investors. Over 50 per cent of the total trades on the Frankfurt Stock Exchange are undertaken by investors based in nations other than Germany.
As of 1:20 PM AEDT, FYI shares are trading at AUD 0.425, with a rise of ~5 per cent.
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