The market for non-U.S. companies raising capital in depositary receipt (DR) form remained strong in 2013, with $10.5 billion in DR capital raised.
According to an industry report from Citi, initial public offerings in DR form drove issuance, representing $5.6 billion - or 54% - of the total, as IPOs rebounded during the 4 th quarter of 2013. In 2013, follow-on offerings in DR form represented approximately $4.9 billion – or 46% - of the total, up 135% compared to 2012. The EMEA region was at the forefront of overall capital raising with 17 issuers raising approximately $4.6 billion. The biggest year-over-year increase came from the Asia Pacific region which had 25 issuers raise $4.4 billion, up 164% compared to 2012.
“The dramatic increase in follow-on offerings shows that there is healthy investor demand for equity issued by non-U.S. companies,” said Nancy Lissemore, Managing Director, Global Head of Depositary Receipt Services, Citi. “Due to a combination of Citi’s global reach, local expertise, an industry-leading distribution network, and specialized investor relations support, Citi as Depositary was able to obtain a dominant market share in follow-on offerings in DR form and 33% market share in total capital raised in DR form.”
Other Notable DR Market Highlights in 2013 Include:
- Transactions from Russia ($2.6 billion), Taiwan ($2.1 billion) and China ($1.4 billion) combined for 58% of total capital raised.
- The top two DR capital raisings overall came from issuers in the financial sector: TCS Group Holdings ($1.1 billion) based in Russia, and Fubon Financial (US$0.9 billion), based in Taiwan.
- The Financial, Communications and Industrial sectors together accounted for approximately 59% of the total capital raised.