Global Depositary Receipt


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Global Depositary Receipt

A receipt denoting ownership of foreign-based corporation stock shares which are traded in numerous capital markets around the world.

Global Depositary Receipt (GDR)

A receipt on shares of a foreign company when funds are simultaneously raised in two or more markets.

Global depositary receipt (GDR).

To raise money in more than one market, some corporations use global depositary receipts (GDRs) to sell their stock on markets in countries other than the one where they have their headquarters.

The GDRs are issued in the currency of the country where the stock is trading. For example, a Mexican company might offer GDRs priced in pounds in London and in yen in Tokyo.

Individual investors in the countries where the GDRs are issued buy them to diversify into international markets. GDRs let you do this without having to deal with currency conversion and other complications of overseas investing.

However, since GDRs are frequently offered by newer or less-known companies, the prices are often volatile and the stocks may be thinly traded. That makes buying GDRs riskier than buying domestic stocks.

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References in periodicals archive ?
BEIRUT: Solidere has requested London Stock Exchange to delist its Global Depositary Receipts from the British bourse effective June 29, 2017, due to low trading volumes.
MegaFon announced in October it would offer investors ordinary shares and Global Depositary Receipts held by Finnish and Swedish telecoms giant TeliaSonera (10.6 percent) and a MegaFon subsidiary, MegaFon Investments (4.4 percent).
(010060.SE), a South Korea-based poly-silicon maker, has priced its USD700m global depositary receipts programme.
Remco may also sell global depositary receipts through a capital increase, he said, without elaborating.
Investment firm Kuwait Projects Company (Kipco) has delayed plans to sell global depositary receipts (GDR) abroad due to bad market conditions, its chief executive said in remarks published on Tuesday.
Its shares are traded in the form of global depositary receipts (GDRs) listed in Berlin and Luxembourg.
CICC UK has become the first UK cross-border Global Depositary Receipts conversion institution announced under the scheme.
In addition to specializing in administering cross-border equity structures such as American and Global Depositary Receipts, Deutsche Bank provides corporates, financial institutions, hedge funds and supranational agencies around the world with trustee, agency, escrow and related services.
Second phase: An increase of up to 25 per cent of the current paid-up share capital through the issuance of new shares, in the form of Global Depositary Receipts, to be held by a strategic shareholder being the depository bank, and the Global Depositary Receipts to be listed on the London Stock Exchange.
The company expects its global depositary receipts (GDRs), each accounting for one ordinary share, to be delisted from the London bourse as of 21 March.
The group currently holds about 25.5 percent of the ordinary shares and 4.8 percent of the global depositary receipts issued by United Bank, it said.
Sino-American Silicon Products Incorporated (5483.OT), a Taiwan-based producer of wafers for solar cells, has raised USD177.2m from the sale of Global Depositary Receipts.

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