Explaining an American Depositary Receipt
An American Depositary Receipt (ADR) is a negotiable United States certificate representing ownership of shares in a non-US corporation.
How an American Depositary Receipt works
ADRs were specifically designed to facilitate the purchase, holding and sale of non-US securities by US investors and to provide a corporate finance vehicle for non-US companies.
ADRs are quoted and traded in US dollars in the US securities market. Dividend payments are also paid in US dollars.
The benefits of ADRs for US investors
US investors generally prefer to purchase ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to US market conventions.
One of the main advantages is the facilitation of diversification into foreign securities.
ADRs allow easy comparison to securities of similar companies, as well as access to price and trading information.
ADR holders also appreciate US dollar dividend payments (if declared) and receiving corporate action notifications.
Where and how Severn Trent ADRs are traded
We have a sponsored Level 1 American Depositary Receipt (ADR) program, for which The Bank of New York Mellon acts as Depositary.
The ADR program trades on OTCQX, previously known as Pink Sheets - the premier tier of the United States-based, over-the-counter market.
ADRs are traded under the symbol STRNY, and it is not listed on a US stock exchange. Each ADR represents one Severn Trent Ordinary Share.
Country: United Kingdom
Industry: Gas, H20 & Multiutility
Depositary: BNY Mellon (Sponsored)
Effective Date: Mar 5, 2012
Underlying SEDOL: B1FH8J7
Underlying ISIN: GB00B1FH8J72
US ISIN: US81814P2092
The difference between registered ADR holders and beneficial ADR holders
A registered holder is one whose name appears on the books of the Depositary, as registrar. The registered holder is considered the owner of record.
A beneficial holder is one whose holdings are held in another name, such as a broker, bank or nominee.
Contact BNY Mellon
If you have any enquiries regarding Severn Trent ADRs please contact BNY Mellon.