π¨ Will OPay really list on the NGX at β¦25,000 per share? Not necessarily!
Many investors are getting this wrong.
Letβs understand something called ADS (American Depositary Share).
An ADS allows investors in the US to invest in a foreign company through the US stock market.
Hereβs a simple example:
Assume OPayβs ADS trades at $19 on the NYSE.
Does that mean one ordinary OPay share is worth $19? Not necessarily!
OPay has confirmed that 1 ADS represents 10 ordinary shares.
Therefore:
1 ADS represents 10 ordinary shares.
1 ADS trades at $19.
Then one ordinary share is worth $1.90, not $19.
Thatβs a huge difference!
So, before converting OPayβs reported $19 ADS price to naira and concluding that one OPay share will cost approximately β¦25,000 on the NGX, we must account for the ADS-to-ordinary-share ratio.
Think of an ADS as a wrapper that makes foreign shares easier to trade in the US.
The lesson: Donβt confuse the price of an ADS with the price of one ordinary share.
#OPay #NGX #NigerianInvestors #TNI