Growthpoint Properties Limited has a Level 1 ADR (American Depositary Receipt) programme in the United States. The Bank of New York Mellon (“BNY Mellon”) is the sponsoring bank, and the depositary receipts trade in the OTC (over-the-counter) market. Symbol: GWPTY CUSIP: 40009U100 Exchange: OTC Ratio (ADR to ORD): 1:2 Country: South Africa Industry: Real Estate Inv&Serv Depositary: BNY (Sponsored) Effective Date: September 30, 2013 Underlying ISIN: ZAE000179420 U.S. ISIN: US40009U1007
An American Depository Receipt (“ADR”) is a negotiable U.S. certificate representing ownership of shares in a non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market. Also, the dividends are paid to investors in U.S. dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. investors, and to provide a corporate finance vehicle for non-U.S. companies. US investors generally prefer to purchase ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to US market conventions.
One of ADRs’ main advantages is the facilitation of diversification into foreign securities. ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information, if listed. ADR holders also appreciate dollar dividend payments and receiving corporate action notifications.
ADR issuers are typically large multinational corporations. Any non-U.S. company seeking to raise capital in the U.S. or increase their base of U.S. investors can issue ADRs. Growthpoint’s rationale for implementing the programme is to increase the percentage foreign shareholding in Growthpoint so as to enhance the diversification of the shareholder base.
The ADR programme assists in making an investment in Growthpoint as accessible as possible. The ADR programme is a relatively low-cost way to develop name recognition and to attract more attention amongst the US financial community. An important additional benefit is increased liquidity in the shares. The Growthpoint ADRs are traded Over-The-Counter (“OTC”). The depository for Growthpoint ADRs is BNY Mellon. The depositary bank plays a key role in the process of issuance and cancellation of ADRs. It also maintains the ADR holder register and distributes the dividends in US dollars. For additional information, please visit The BNY Mellon's website: link