DR News: Bumper Year Ahead For Asian DRs


By Anita Hawser

A Korean flour and feeds mill company, DongA One, selected BNY Mellon as its depositary bank for its ADR program.

Each ADR issued represents two common shares of the Korean company, which trades on the Korean Stock Exchange.DongA One is using the ADR as part of its plans for global expansion and brand building. “By making our shares more accessible to sophisticated and long-term investors, the company can now offer investment opportunities in its future strategic initiatives, such as the development of global grain resources, our pet food business and smart winery solutions,” says Rhee Chang Shik, CEO of DongA One. Rhee adds that the company is now well positioned to allow a direct channel to US investors and further expand its international shareholder base.

In other ADR news, 2011 is predicted to be a good year for ADR capital raising, says J.P. Morgan, particularly for the Asia Pacific region. It anticipates that Hong Kong’s HDR market will remain popular with companies looking to participate in the Asian economic growth story. The bank also expects increased issuance from Chinese and Singaporean companies looking to list DRs on the Taiwan Stock Exchange. Kenneth Tse, Asia Pacific Head of J.P. Morgan’s depositary receipts group, said: “With the continued recovery of capital markets globally and an improvement in corporate earnings generally, we’re expecting 2011 to deliver another strong year of growth in the Asia Pacific depositary receipts space.” In 2010, Asian DR trading value increased 14.5% to $882 billion, says J.P. Morgan.