NEW YORK--(BUSINESS WIRE)--Demand for non-U.S. equities remained strong during the first six months of the year, as non-U.S. companies raised $4.1 billion in depositary receipt (DR) form in the first half of 2017, an increase of more than 200% from the first half of 2016, according to an industry report from Citi.
Initial public offerings (IPOs) in DR form represented $1.6 billion – or 40% – of the total, driven by capital raisings from issuers in Taiwan and Brazil. Follow-on offerings in DR form represented approximately $2.5 billion – or 60% – of the total.
“Citi’s Depositary Receipt Services participated in raising more than 40% of the total DR capital issued in the first half of 2017, which demonstrates our leading position in the industry,” said Nancy Lissemore, Global Head of Depositary Receipt Services at Citi. “Prominent global clients continue to choose Citi as their preferred provider of choice for our innovative solutions, market leadership and focus on execution.”
Recently, The Asset magazine honored Citi as the “Best DR Bank” in Asia in its 2017 Triple A Asset Servicing, Fund Management and Investors Awards. This prestigious award is based on the performance of Citi Depositary Receipt Services in 2016, highlighting the team’s strength in servicing clients, commitment to innovation and focus on delivering market expertise.
Reflecting the strong demand for non-U.S. equites, Citi’s Liquid DR World ex-U.S. Index of existing DRs has increased 10% since the beginning of 2017. Overall, U.S. investment in non-U.S. equities grew 8% in the first quarter of 2017 from the fourth quarter of 2016, to $7.6 trillion, as a result of $450 billion in net inflows, according to data published by the Board of Governors of the Federal Reserve System.
Other Notable DR Market Highlights in the first half of 2017 include:
- The Internet, Pharmaceutical and Oil & Gas sectors accounted for 56% of the total DR liquidity.
- The Semiconductor and Airline sectors accounted for 57% of the total DR capital raised.
- Trading volume of unsponsored DR programs decreased 9% from first half of 2016 to 1.4 billion, primarily due to decreases in trading volume from issuers in Switzerland, the United Kingdom and Hong Kong.
- Unsponsored DR programs from Japan and France accounted for 40% of the total unsponsored trading volume.
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 2017 DR highlights, 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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