Depositary Receipt Capital Raised in 2020 Totaled $48.2 Billion

Asia-Pacific Generated 84% of Total

NEW YORK--(BUSINESS WIRE)--Despite global market uncertainty, demand for non-U.S. equities ensued as issuers raised $48.2 billion in depositary receipts (DR) during 2020. This represents a 179% increase compared to 2019, according to an industry report from Citi.

DR capital raisings were driven primarily by activity in the Asia-Pacific region, with total capital raisings of $40.4 billion – 84% of the total pool. Total IPO capital raised amounted to $21.6 billion, while total follow-on capital raised amounted to $26.6 billion throughout the year. China-based issuers raised a combined $36.5 billion, accounting for 76% of the total DR capital raised in 2020. Among these issuers, Lufax Holding Ltd, a Shanghai-based personal finance platform, raised $2.7 billion in its November IPO – the largest DR IPO capital raising of 2020. Secondary offerings were driven by the Automobiles & Components industry, totaling $9.1 billion with robust follow on offerings from NIO Inc., Xpeng Inc., and Li Auto Inc. throughout the year. Three Chinese issuers completed a GDR IPO via the Shanghai London Stock Connect, including China Pacific Insurance (Group) Co., Ltd., China Yangtze Power Co., Ltd. and SDIC Power Holdings Co., Ltd, raising a combined $4.1 billion in 2020.

The trend of Emerging Growth Companies (EGCs) raising capital continued in 2020, with 35 of 39 new ADR issuers choosing to come to market via the JOBS Act. Enacted in 2012 to help small emerging companies access capital in the U.S., the JOBS Act modifies capital raising regulatory requirements for a new category of issuer known as an EGC (defined as an issuer generating less than $1.07 billion in gross annual revenue). Of the JOBS Act IPO DR deals in the first half of 2020, China-based issuers accounted for 22 of the 35 ADR deals and 75% of total capital raised.

Other Notable DR Market Highlights throughout 2020 include:

• Total DR trading volume was up 53% and total DR trading value was up 68% versus 2019.

• DR trading volume was highest within the Banking sector with 34 billion DRs traded, while DR trading value was highest within the Internet Services sector with $2.06 trillion in DRs traded.

• Trading volume of unsponsored ADR programs increased 46% from 2019 to 6.7 billion, while total number of programs increased slightly to 1,451.

• Unsponsored ADR programs from Japan, China, and France accounted for 52% of the total unsponsored trading volume.

Citi is a leading provider of depositary receipt services. With depositary receipt programs in 67 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 2020 DR highlights, please refer to the Citi DR website: www.citi.com/dr.

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