Increasing globalization and investor appetite for diversification offer a unique opportunity for companies looking to tap a new investor base, expand awareness or raise capital. Creating a depositary receipt program gives issuers flexibility and the access necessary to achieve strategic goals, while providing investors with an easy and convenient way to invest in companies outside their home markets.
Benefits for corporate issuers:
- Creates, broadens or diversifies investor base to include investors in other capital markets
- Enhances visibility and global presence among investors, consumers and customers
- Increases liquidity by tapping new investors
- Develops and increases research coverage of the company
- Improves communication with shareholders globally
- Enables price parity with global peers
- Offers a new venue for raising equity capital
- Facilitates M&A activity by creating a desirable stock-swap "acquisition currency”
Benefits for ADR investors:
- Easy to purchase and hold and can be more cost effective than holding the underlying share directly
- Trades and settles in the same manner as any other security available in the investor's home market
- Facilitates global / sector diversification by providing access to new companies
- Enables comparison with other investments due to accessible price information
- Pays dividends and delivers corporate action notifications in investor's home currency and language
J.P. Morgan is the premier provider of customized Depositary Receipts solutions to the world’s leading issuers. We leverage our distinct strength as a global Equities leader to help our clients navigate the capital markets and attract high-quality investors. Guided by J.P. Morgan’s core principle of “first class business in a first class way,” DR issuers have relied on us for over 85 years for the trusted advice and long-term partnership that we offer.
For market information on Depositary Receipts, please visit J.P. Morgan's online portal adr.com.