It says current investors in China Gaoxian could take advantage of this opportunity to buy its KDR and sell SGX shares (in equivalent amount) to make the spread (+12% before transaction costs).
CIMB adds, “traders playing the dual listing theme will be better off taking profits on announcement of dual listing offer price,” noting China Gaoxian’s shares fell 5.6% (to $0.42) on the next trading day after it announced its KDR pricing at $0.405 per share (a discount to its last transacted price on the SGX of $0.445) after it had rallied +134% from $0.19 (last closing price before the KDR plans were revealed) to $0.445 (just before KDR pricing announced).