NEW YORK--(BUSINESS WIRE)--Initial public offerings (IPOs) filed under the Jumpstart Our Business Startups (JOBS) Act dominated depositary receipt (DR) IPOs in 2015, according to an industry report by Citi.
Non-U.S. companies raised $1.9 billion in DR form under the JOBS Act, according to Citi’s report, accounting for 86% of global DR IPOs in 2015. Among industries, pharmaceutical and biotechnology companies led DR IPO activity, representing 63% of the companies that raised capital through a DR IPO under the JOBS Act. In addition, China-based issuers accounted for the largest number of JOBS Act DR deals.
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.
“Citi’s DR programs raised 42% of the total JOBS Act DR capital issued in 2015, demonstrating that Citi Depositary Receipt Services is a provider of choice for both issuers and investors,” said Nancy Lissemore, Global Head of Depositary Receipt Services at Citi. “We strive to provide our clients and their investors with the highest level of depositary receipt services.”
The Asset magazine honored Citi as the “Best DR Bank” in Asia in its 2015 Triple A Asset Servicing, Investor and Fund Management Awards. In addition, Citi was awarded the “Best DR Mandate” for its role as the depositary bank for Alibaba Group Holding Limited’s American Depositary Receipt (ADR) program.
Other Notable DR Market Highlights in 2015 include:
- Non-U.S. companies raised $11 billion in DR form during 2015. Follow-on offerings in DR form represented $8.8 billion – or 80% – of the total, driven by transactions from the pharmaceutical, internet and banking sectors.
- Transactions from Israel ($3.8 billion), China ($2.3 billion) and India ($1.9 billion) combined for 73% of total DR capital raised.
- Trading volume of unsponsored ADR programs increased 81% to nearly 5.1 billion DRs.
- Unsponsored ADR programs from Japan and Greece accounted for 55% of the total unsponsored trading volume.
Citi is a leading provider of depositary receipt services. With depositary receipt programs in 56 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 about Citi’s Depositary Receipt business, please refer to the Citi DR website: www.citi.com/dr.
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.
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