China-Based Issuers Lead Depositary Receipt Capital Raising Activity in 2019
February 11 2020 - 10:00AM
Business Wire
China-based issuers led initial public offerings (IPOs) and
follow-on offerings in depositary receipt (DR) form in 2019,
representing more than half of all DR activity, according to an
industry report from Citi.
China-based issuers raised a combined US$10.0 billion, according
to Citi’s report, accounting for 58% of the total DR capital raised
in 2019. Among these issuers, Huatai Securities Co., Ltd, a leading
integrated securities group in China, raised US$1.7 billion in its
June 2019 GDR offering, being the first Chinese company to list on
the London Stock Exchange via the Shanghai-London Stock Connect. In
addition, Pinduoduo Inc., an e-commerce platform, conducted a $1.6
billion follow-on offering in the largest DR secondary offering of
the year.
Citi played an integral role in bringing the Shanghai-London
Stock Connect to market, working closely with regulators,
exchanges, law firms, custodians and brokers to help build the
network and capabilities required to service issuers intending to
utilize the Connect arrangement.
“Citi continues to be a leader in the DR industry being the
first depositary bank to implement a Shanghai-London Connect GDR
program,” said Nancy Lissemore, Global Head of Depositary Receipt
Services at Citi. “We strive to expand the DR product globally and
provide our clients and their investors with the highest level of
service.”
Other Notable DR Market Highlights from 2019 include:
- The Internet and Oil & Gas sectors accounted for 45% of the
total DR trading value.
- 33 issuers completed IPOs by way of the JOBS Act.
- Trading volume of unsponsored ADR programs decreased 12% from
2018 to 4.6 billion, primarily due to decreases in trading volume
from Chinese issuers.
- Unsponsored ADR programs from China and Japan accounted for 48%
of the total unsponsored trading volume.
Citi is a leading provider of depositary receipt services. With
depositary receipt programs in 67 markets, spanning equity and
fixed-income products, Citi leverages its global network to provide
cross-border capital market access to issuers, intermediaries and
investors.
Recognizing Citi’s sophisticated capabilities and depositary
receipt platform, the firm was awarded “Best GDR Bank” by Global
Finance magazine in the 2019 Best Depositary Receipt Awards. In
addition, Citi was also awarded the “Best DR Bank for Capital
Raising” for being the leader in this category both in terms of
capital raised and in the number of capital raisings in 2018.
For more details on 2019 DR highlights, please refer to the Citi
DR website: www.citi.com/dr.
Citi
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
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LinkedIn: www.linkedin.com/company/citi
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version on businesswire.com: https://www.businesswire.com/news/home/20200211005037/en/
Media: Sophia Anthony Citi Global Public Affairs Banking,
Capital Markets & Advisory Communications +1 (212) 816-7140
sophia.anthony@citi.com
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