Depository Receipts enable non-U.S. companies to broaden their U.S. shareholder base or raise capital through registered public offerings or private placements. Created in 1927, American Depository Receipts (ADRs) are U.S. securities that represent shares of a non-U.S. company and trade in the U.S. financial markets in U.S. dollars, similar to those of ordinary shares of U.S. companies.
Citibank provides a full range of Depository Receipt services, including liaison with the issuer, investment bank, issuer’s legal representative and regulatory agencies during the development of the program. Following the program launch, Citibank issues DRs against deposit of underlying shares; provides transfer and registration services, account management, corporate action services. The bank also supports information needs and sets up custodian arrangements for holding shares in the issuers’ home market.
Major program types include unlisted ADRs that trade over-the-counter; listed ADRs that trade on the NYSE, Nasdaq or Amex. Citibank specializes in ground- breaking Depository Receipt offerings, creating the first:
Global Depository Receipts (GDRs) - simultaneous offerings in multiple markets;
Rule 144A American Depository Receipts - sold to qualified institutional buyers only;
Singapore Depository Receipts;
American Depository Debentures - convertible debt in Depository form.