Advisory Services for Non-US Publicly-Traded Companies
North America's financial markets are among the strongest in the world, and there is a strong and demonstrated demand from both private and institutional US investors to invest in small-cap, mid-cap and non-US growth companies. However, due to regulatory requirements as well as practical factors, it is difficult, if not impossible for these investors to purchase securities that are not approved for trading in the United States, securities that aren't in the US securities clearing system and for which a trading market doesn't exist in US dollars.
The creation of American Depositary Receipts (ADRs) enables non-US publicly-traded companies to have a US publicly-traded security that is denominated in US dollars, and most importantly one that is in the US securities clearing system (DTC).
When non-US publicly-traded companies have ADR programs, the potential exists for these companies to achieve a higher market cap, obtain additional sponsorship from US buy-side and sell-side firms, and have increased access to capital from the US financial community and investors.
WHAT ARE THE POTENTIAL BENEFITS OF AN ADR PROGRAM?
- Greater liquidity for the company's shares by having an additional market for the company's ADRs in the Unites States. Increased share price
- The ability to raise capital in the US through private placements or public offerings (depending on the ADR program selected)
- A higher profile with the US financial and business community
- The company's ADRs listed on NASDAQ, AMEX, NYSE, the OTC Bulletin Board or over-the-counter
- The ability to motivate US staff with US tradable securities
- US acquisitions can be more easily accomplished, especially if company ADRs are utilized to fund part or all of the acquisition.
- The company can be perceived as being a "global player."
FRIEDLAND GLOBAL CAPITAL MARKETS' APPROACH
Friedland Global Capital Markets' approach provides for a fast-track creation of an ADR
program in the US - which can be achieved in a relatively short period of time.
To Download Friedland Global Capital Markets' Guide to American Depositary Receipts, click here.