Depositary Receipt Capital Raising Activity Rebounds in 2017

New York – Depositary Receipt (DR) capital-raising activity in 2017 rebounded significantly from 2016 as more non-U.S. companies sought to raise funds from U.S. investors in DR form, according to Citi's Depositary Receipt Services Year-End 2017 Report.

Foreign issuers raised $15.6 billion in DR form in 2017, up 126 percent from the previous year. Companies from China led the activity, accounting for 26 percent of the total, according to Citi's report. By sector, companies in the pharmaceutical and biotechnology, financial and energy industries issued 38 percent of the capital raised in DR form.

In addition, 24 issuers leveraged the JOBS Act to conduct DR initial public offerings (IPOs), accounting for 75 percent of all DR IPOs. Enacted in 2012 to help small and emerging companies raise capital in the United States, the JOBS Act modified regulatory requirements for a new category of issuer, known as an Emerging Growth Company, which generates less than $1 billion in gross annual revenue.

"The significant rise in DR capital raising activity demonstrates that DRs are an attractive vehicle for both issuers and investors," said Nancy Lissemore, Global Head of Depositary Receipt Services at Citi.

"Moreover, Citi's DR programs helped raise 43 percent of the total DR capital issued in 2017 and more than 50 percent of DR IPOs, clearly showing that Citi is a leading depositary bank. At Citi, we strive to provide the highest level of depositary receipt services to our clients and their investors."

The Asset magazine honored Citi as the "Best DR Bank" in Asia in the 2017 Triple A Asset Servicing, Fund Management and Investors Awards.

Other notable DR market highlights in 2017 include:

• The value of DRs held by institutional investors totaled $1.1 trillion as of the third quarter of 2017, the first time reaching such levels.
• Total DR trading values increased 16 percent from 2016, while trading volumes decreased 9 percent from the same period.
• The pool of unsponsored American Depositary Receipt programs grew to 1,644 in 2017, with programs from Japan, China and France accounting for 56 percent of the total unsponsored trading volume during the year.

Citi is a leading provider of depositary receipt services. With depositary receipt programs in 61 markets, spanning equity and fixed-income products, Citi leverages its global network to provide cross-border capital market access to issuers, intermediaries and investors.

For more details on the 2017 DR market, please refer to Citi's Depositary Receipt Services Year-End 2017 Report. For more information about Citi's Depositary Receipt business, please refer to the Citi DR website: www.citi.com/dr.

Citi
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Media Contact:
Citi
Robert Julavits, 212-816-8020
robert.w.julavits@citi.com