Here’s why the Recce (ASX:RCE) share price is racing higher today
The Recce Pharmaceuticals Ltd (ASX: RCE) share price is pushing higher on Monday morning.
At the time of writing, the synthetic anti-infectives focused biotechnology company’s shares are up 3% to $1.01.
Why is the Recce share price pushing higher?
Investors have been buying Recce shares this morning after it announced the successful dual listing of its shares on the Frankfurt Stock Exchange in Germany. This will see the company’s shares hit the Frankfurt bourse at the opening of trade at 8am central European time today.
According to the release, the dual listing was possible without many of the normal primary listing procedures. This means the company will benefit from a widening of its investor reach with minimal cost.
In addition, there was no associated capital raising for this listing or issuance of new securities. This was due to the company’s strong existing financial position and the fact that it is listed and market-makable via the ASX.
Recce’s Chairman, Dr. John Prendergast, appeared delighted with its dual listing.
He commented: “Dual-listing on the Frankfurt Stock Exchange is a wonderful new chapter in our global strategy. As the third largest stock exchange in the world, it sees the connection of EU biotech and overseas capital with the Company’s New Classes of Synthetic Anti-Infectives development program.”
The company’s investor and corporate relations advisor in Europe, Deutsche Gesellschaft Für Wertpapieranalyse (DGWA), spoke very positively about the listing. It appears to believe Recce will be an attractive investment option for European investors.
DGWA’s CEO, Stefan Müller, said: “DGWA are thrilled to be working with Recce in Europe. Investor interest in quality biotechnology companies is significant and increasing with the global anti-infective market expected to grow at a compound rate of over 30% to 2030 and anticipate this German listing will provide EU investors an opportunity to participate in that growth. We are confident Recce will be warmly welcomed among the European investment community and look forward to supporting their activity in the region over the time ahead.”
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