Pushing the boundaries

Published: February 6, 2019

New markets in the EMEA region are opening up apace in the depositary receipts market, but China remains the looming driving force behind activity.

There were 48 new depositary receipt programmes launched in the first half of this year, split almost equally between sponsored and unsponsored, according to Bank of New York Mellon figures, with companies raising US$8bn of capital through the product.

Investment in non-US domiciled equities rose by 18% year-on-year for the first quarter of 2018, the BNY Mellon data show, reaching US$8.9bn for the first three months of this year. 

Investment is filtering through into new markets. The National Atomic Company of Kazakhstan (Kazatomprom), known informally as the ‘Saudi Aramco of uranium’, went ahead with a US$450mn IPO at the tail end of 2018 in a deal that valued the company at US$3bn.

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