06 January 2014
Depository receipt structures remain a low cost way for companies to attract US investors
American depository receipts (ADRs) are negotiable US securities issued by a US bank, referred to as a ‘depositary bank’. Typically, they represent a non-US
company’s equity. DRs trade freely in global markets and can be listed on major stock exchanges, including the NewYork Stock Exchange, NASDAQ, the London
Stock Exchange and the Luxembourg Stock Exchange. The ADR market remains a common way for a non-US company to attract US investors and the easiest route to a US listing.
There are a...