International Depository Receipt

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International Depository Receipt (IDR)

A receipt issued by a bank as evidence of ownership of one or more shares of the underlying stock of a foreign corporation that the bank holds in trust. The advantage of the IDR structure is that the corporation does not have to comply with all the issuing requirements of the foreign country where the stock is to be traded. The US version of the IDR is the American Depository Receipt (ADR).

International Depository Receipt

A certificate issued by a bank representing shares of a stock the bank holds in trust but that are traded on a foreign stock exchange. The IDR is denominated in the local currency, and entitles the bearer to any dividends and other benefits associated with the shares. IDRs can be traded like any other security. Using IDRs shields the investor from foreign exchange risk and any applicable tariffs he/she would have had to pay if he/she had bought the stock outright. It also exempts the investor from any requirements the foreign exchange might have levied. It is also known as a global depository receipt (GDR). See also: American Depository Receipt.
References in periodicals archive ?
Abu Hend said that GDRs have--again--become a gateway for repatriating funds among Egyptian investors even though the Egyptian Financial Supervisory Authority imposes restrictions on Egyptians receiving proceeds of sales in foreign currency and encourages them to receive proceeds in Egyptian pounds.
The offer period for Damac shareholders to swap GDRs for new shares opened on 30 July and was initially due to close on 2 September but it has subsequently been extended and is now open until 24 September.
The company did not mention at what price it sold them, but based on the weighted average price of a Novatek GDR during the period, the proceeds could have amounted to USD3.7m (EUR2.7m), Interfax said.
This closure is said to mean that all new issuances of GDRs will be temporarily stopped until a new UKLA prospectus is filed for additional shares.
"This is the largest Romanian IPO ever and the first Romanian privatization to include GDRs which will be traded on the London Stock Exchange," said Christopher M.
Based on our estimates, the fair value of IGSS is $592mn, or $57 per GDR. The spinoff coefficient implies that Integra's GDR holders will receive the equivalent value of $1.14 per GDR.
The company stated that it expects that all remaining conditions to the placing will be satisfied, and that the closing of the placing and admission of the GDRs to the Official List of the United Kingdom Financial Services Authority - and admission to trading of the GDRs on the main market of the London Stock Exchange - will occur on September 15.
The Egyptian Stock Exchange (EGX) is studying the possibility of allowing Egyptian investors to obtain sale proceeds of Global Depositary Receipts (GDR) in dollars as well as the double-entry stocks registered in foreign markets, EGX Chairman Mohamed Omran said.
Investors would get around 23.08 shares per GDR. They have until 2 September to decide on the offer, the developer said in a statement to the LSE on Wednesday (30 June).
Novatek will repurchase shares and GDRs through its unit Novatek Equity (Cyprus) Limited.
A 36% part of the 15% IPO 5.4% of the firm's stocks was divested under a GDR mechanism in London at a price of USD 9.25 per GDR.
Independent oil and gas company Zhaikmunai LP (LSE: ZKM) announced today that, in accordance with the authority granted by its limited partners at the partnership's General Meeting on 28 March 2013, it has purchased 56,433 of its Global Depositary Receipts (GDRs) through Deutsche Bank AG during the period 20 May 2013 through and including 25 May 2013.