Sponsored ADR

Sponsored ADR

An American Depositary Receipt issued with the knowledge and cooperation of the company whose stock backs it. Unlike other ADRs, which simply give the monetary benefits of ownership, sponsored ADRs are treated just like common stock, complete with voting rights, only denominated in the U.S. dollar. In order for an ADR to trade on the New York Stock Exchange, it must be sponsored. See also: International depositary receipt.
References in periodicals archive ?
Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility.
BANKING AND CREDIT NEWS-November 17, 2017-Citi named depositary bank for Hexindai Inc.'s sponsored ADR program
M2 EQUITYBITES-November 17, 2017-Citi named depositary bank for Hexindai Inc.'s sponsored ADR program
Global Banking News-October 16, 2017--Citi to serve as depositary bank for RYB Education's sponsored ADR program
As an inducement to grant an exclusive arrangement for a sponsored ADR program, a DI may offer to pay a portion of the expenses the issuer incurs to institute the program.
This is the simplest form of sponsored ADR, which means that it is a non-capital raising activity and MPIC will not have the benefit of listing on the US stock exchange.
Particulars for the US sponsored ADR program are as follows:
SMTH's sponsored ADR programme succeeds STB's existing sponsored ADR programme, for which BNY Mellon served as the depositary bank.
In addition, the trading ofthe Company's sponsored ADR facility on OTCQX International, the US OTC market's highest tier, was commenced on 21 January 2010.
NORDIC BUSINESS REPORT-1 March 2010-Danish Carlsberg establishes sponsored ADR programme in USA(C)1994-2010 M2 COMMUNICATIONS http://www.m2.com
In a sponsored ADR, the foreign company cooperates with the depository in order to create the ADR.
In the same year 165 new sponsored ADR programs were established, compared to 52 in 19881.