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Sponsored Level I Depositary Receipts
Sponsored Level II Depositary Receipts
Sponsored Level III Depositary Receipts
SEC Rule 144A
SEC Regulation S
Sponsored Level I DRs
Level I Depositary Receipts are traded in the U.S. over-the-counter (OTC) market.
Sponsored Level II & III DRs
SEC Rule 144A DRs
SEC Regulation S DRs
Regulation S programs provide for raising capital through the placement of Depositary Receipts offshore to non-U.S. investors in reliance on Regulation S.
SEC Regulations
Simultaneous & upgraded DR programs
:SugarwareZ-157:
Sponsored Level II Depositary Receipts
Sponsored Level III Depositary Receipts
SEC Rule 144A
SEC Regulation S
Sponsored Level I DRs
Level I Depositary Receipts are traded in the U.S. over-the-counter (OTC) market.
- Establishment of a Level I program does not require full SEC registration and the company does not have to report its accounts under U.S. GAAP or provide full SEC disclosure.
- Sponsored Level I Depositary Receipt program allows companies to enjoy the benefits of a publicly traded security without changing its current reporting process.
- The majority of sponsored programs are Level I. It is the fastest growing segment of the DR business.
Sponsored Level II & III DRs
- Companies that wish to list their DRs on US stock exchange, raise Capital, or make an acquisition using securities use Sponsored Level III securities.
- Sponsored Level II & III DRs are required to register themselves with the SEC.
- US GAAP requirements are applicable to Sponsored Level II & III DRs
SEC Rule 144A DRs
- A company can access the US & other Capital markets through SEC Rule 144A, without registering with the SEC.
- Under Rule 144A, companies can raise capital through private placement of DRs with large institutional buyers (referred to as QIB) in the US.
SEC Regulation S DRs
Regulation S programs provide for raising capital through the placement of Depositary Receipts offshore to non-U.S. investors in reliance on Regulation S.
SEC Regulations
- Shareholder wealth maximisation.
- High standard of Corporate Governance.
- Focus on Core-Competence.
- Aiming to achieve Global competitiveness.
- High Disclosure level.
- Adherence to GAAP.
Simultaneous & upgraded DR programs
- Companies can start off with a Level I DR program & later upgrade their programs to Level II (listing) & Level III (offering).
- A Level I program can be established along side a Rule 144A program and a Regulation S program may be merged into a Level I program after the restricted period has expired.
:SugarwareZ-157: