NEW YORK, July 27, 2015 /PRNewswire/ -- Pharmaceutical and
biotech companies led the pack in terms of capital raising through
depositary receipts during the first half of 2015, representing
two-thirds of all transactions and about a third of total dollars
raised, according to BNY Mellon's Depositary Receipts 2015 Midyear
Update.*
As of June 30, 21 DR offerings
globally raised $3.8 billion.
Fourteen transactions came from the bio-pharma sector, raising
nearly $1.3 billion. Pharmaceutical
and biotech firms also accounted for the most new DR programs
created this year. Of the 34 new programs established through June,
10 were from the sector.
"Bio-pharma companies, especially those in Western Europe, have been quite active in
choosing depositary receipts as a means to raise capital and build
awareness with U.S. investors and the analyst community," said
Christopher M. Kearns, CEO of BNY
Mellon's Depositary Receipts business. "DRs have been a conduit
connecting many of these smaller, innovative firms with a wider
investment community worldwide."
Over the past three years, BNY Mellon has been the depositary
for more than half of all healthcare, pharmaceutical and biotech
companies that have raised capital in DR form.
Kearns added, "While investors these first six months weathered
market volatility as well as concerns such as the Greek debt crisis
and growth rates in China, DR
trading numbers rose to their highest levels in four years. The
continued enthusiasm for depositary receipt listings suggests that
global investors recognize how DRs can help diversify their
portfolios to suit a variety of market conditions."
The first half saw two notable firsts in the DR industry.
Edita Food Industries S.A.E. chose BNY Mellon for its
listing on the London Stock Exchange (LSE), the first global
depositary receipt capital raising from Egypt since 2008. Also, as depositary for
Fondul Proprietatea S.A., a joint stock company operating as
a closed-end investment fund in Romania, BNY Mellon created a DR program for
its dual listing on LSE's Specialist Fund Market, the first
ever closed-end fund to list there in depositary receipt form.
Depositary receipts typically represent non-U.S. companies'
shares and trade on U.S. traditional and over-the-counter markets
and major stock exchanges worldwide. There are more than 3,650 DR
programs globally available to investors as of June 30.
Key H1-2015 highlights:
- Volume and value of total DRs traded were highest since 2011.
Some 81.6 billion DRs valued at $1.57
trillion were traded globally in the first half of 2015, up
8.6% and 4.9%, respectively, from H1-2014.
- Thirty-four new sponsored DR programs were established through
June 30. BNY Mellon served as
depositary for 24 of those, or 70% of all new sponsored
programs.
- The first six months of 2015 saw more modest levels of capital
raised compared to last year. Twenty-one global DR offerings raised
$3.8 billion, with 18 of these listed
on U.S. exchanges. For the same period in 2014, there were 41
capital raising transactions, bringing in over $9.1 billion.
- As of June 30, 2015, total global
investment in depositary receipts was nearly $825 billion, essentially unchanged from a year
ago.
Detailed first half highlights:
- Of the 21 global DR capital raising transactions during the
first half, the Europe,
Middle East, Africa (EMEA) region led all others
with 11 offerings, raising more than $1.4
billion.
- The top 10 DR programs as defined by price performance through
June 30 were led by the Irish company
Innocoll AG (+150%), followed by China's China Southern Airlines Co Ltd
(+144%), Japan's MonotaRO Co
Ltd. (+120%), Global Ports Investments PLC from
Russia (+101%), Cheetah Mobile
Inc. from China (+90%),
China's Vimicro International
Corp. (+87%), China's
Sinopec Shanghai Petrochemical (+84%), Denmark's Forward Pharma A/S (+83%),
GW Pharmaceuticals PLC from the UK (+82%), and China's eHi Car Services Ltd.
(+77%).
- The BNY Mellon Classic ADR Index(SM) Series,
which tracks the performance of depositary receipts by country of
origin, showed Denmark with
the highest total return through June
30 at +20.6%, followed by Russia (+19.6%), Japan (+14.0%), China (+12.4%), and Ireland (+10.6%).
- By sector, the BNY Mellon Classic ADR Index(SM)
Series had Healthcare leading with total returns of 8.8%,
followed by Consumer Services (+7.9%), Consumer Goods
(+7.6%), and Financials (7.6%).
- The EMEA region also experienced the most trading
traffic with 33.5 billion DRs traded with a value of $645 billion, followed by Latin America with 25.6 billion DRs traded at
a value of $234 billion, and
Asia-Pacific, which traded 22.5
billion DRs valued at $693
billion.
- Banks was the most actively traded sector with 14.5
billion DRs traded at a value of $129.2
billion. Oil, Gas & Consumable Fuels came in
second at 14.0 billion DRs traded at a value of $205.2 billion, followed by the Metal &
Mining industry with 11.0 billion DRs traded at a value of
$114.3 billion, Internet Software
& Services with 6.1 billion DRs traded at a value of
$359.7 billion, and Semiconductors
& Semiconductor Equipment with 4.5 billion DRs
traded at a value of $86.8
billion.
To see BNY Mellon's 2015 DR Midyear Update, visit
www.bnymellon.com/dr.
BNY Mellon acts as depositary for more than 2,700 American and
global depositary receipt programs as of June 30, 2015. Acting in partnership with leading
companies from over 65 countries, BNY Mellon is committed to
helping securities issuers access the world's rapidly evolving
financial markets and delivers a comprehensive suite of depositary
receipt services. Learn more at www.bnymellon.com/dr.
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of June 30, 2015, BNY Mellon had $28.6 trillion in assets under custody and/or
administration, and $1.7 trillion in
assets under management. BNY Mellon can act as a single point of
contact for clients looking to create, trade, hold, manage,
service, distribute or restructure investments. BNY Mellon is the
corporate brand of The Bank of New York Mellon Corporation (NYSE:
BK). Learn more at www.bnymellon.com. Follow us on Twitter
@BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for
the latest company news.
*Sources: Bloomberg, BNY Mellon, and other depositary websites;
all data as of June 30, 2015, except
where noted.
This release is for informational purposes only. BNY Mellon
provides no advice nor recommendation or endorsement with respect
to any company or securities. Nothing herein shall be deemed to
constitute an offer to sell or a solicitation of an offer to buy
securities. Depositary Receipts: Not FDIC, State or Federal Agency
Insured; May Lose Value; No Bank, State or Federal Agency
Guarantee. BNY Mellon provides no advice nor recommendations or
endorsement with respect to any company, security or products based
on any index licensed by BNY Mellon, and we make no representation
regarding the advisability of investing in the same.
Contact:
Malcolm
Borthwick
+44 207 163
4109
malcolm.borthwick@bnymellon.com
Aramide Debo
Aina
+44 207 776
0510
adeboaina@broadgatemainland.com
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SOURCE BNY Mellon