Blue Label pursues ADR trading
JSE-listed Blue Label Telecoms has opened up trading for US investors after appointing investment management and services group BNY Mellon as the depositary bank for its sponsored American depositary receipt (ADR) programme.
Joint CEO Mark Levy said the move accelerated Blue Label’s efforts to diversify and increase international shareholding.
Each ADR would represent ten ordinary shares and would trade on the over-the-counter market in the US under the symbol ‘Bulby’.
The ADR was deemed an easily accessible, cheaper vehicle for international investors, some of which have restrictions precluding them from investing offshore, to put foreign stocks in local portfolios.
“Investor demand for African stocks is high. American investors buy ADRs rather than foreign ordinary shares,” BNY Mellon South Africa VP Lauren Czepek said.
She added that $4.1-trillion of the total $16-trillion US investment was invested in non-US equities. ADRs accounted for $1.1-trillion.
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