An ADR is a negotiable U.S. dollar denominated certificate representing ownership of shares in a non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market. Any dividends can be paid to investors in U.S. dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. investors. ADRs can be held in book-entry form or as a physical certificate.
Each ADR is issued by a U.S. depositary bank and the underlying shares are deposited with a custodian. An ADR can represent a fraction of a share, a single share, or multiple shares of a foreign security. LB-Shell PLC’s (Formerly Intelligent Energy Holdings PLC) ADRs each represent 5 LB-Shell PLC (Formerly Intelligent Energy Holdings PLC) ordinary shares.
The holder of an ADR has the right to obtain the underlying foreign security that the ADR represents, but U.S. investors usually find it more convenient to own the ADR.
LB-Shell PLC (Formerly Intelligent Energy Holdings PLC) has established a Sponsored Level 1 ADR program. The ADR trades on the OTC market. This program does not require full SEC registration and the Company does not have to report its accounts under US GAAP or provide full SEC disclosure.
LB-Shell PLC (Formerly Intelligent Energy Holdings PLC) remains listed on the London Stock Exchange Main Market and remains subject to its regulations and oversight.
Just like any other U.S. security, investors can purchase ADRs through their own full-service, discount and/or on-line brokerage firms. ADRs cannot be purchased directly from LB Shell PLC.
Please find below the general details of LB Shell PLC ADR facility:
- Symbol: INGYY
- CUSIP: 45825Y 103
- Exchange: OTC
- Ratio: 1 ADR : 5 ordinary shares
- Depositary: The Bank of New York Mellon (Sponsored)
- Effective Date: 15 January 2015
- Underlying ISIN: GB00BNB7LQ31
- U.S. ISIN: US45825Y 1038
The Bank of New York Mellon (BNY Mellon) acts as depositary bank for LB Shell PLC ADR facility. The depositary bank plays a key role in the process of issuance and cancellation of ADRs, as well as maintains the ADR holder register.
The depositary bank performs the following roles for ADR holders:
- Issues and cancels LB Shell PLC ADRs
- Records and maintains the register of ADR holders
- Acts as the stock transfer agent
- Distributes dividends in U.S. dollars (if applicable)
- Facilitates the proxy voting process and exercises the voting rights on behalf of ADR holders (if applicable)
- Distributes company circulars and Annual General Meeting documentation (subject to applicable securities regulations)
The depository bank also manages the flow of shares between the two separate markets, essentially converting ordinary shares into ADRs when there is demand in the US and converting ADRs back into ordinary shares when there is demand for the ordinary shares. This service creates liquidity between the two markets and the price for both ADRs and ordinary shares will essentially be interlinked and will fluctuate in tandem according to the level of supply and demand in the two markets and this should also ensure any price differential is kept to a minimum.
For additional general information, please visit BNY Mellon’s website at www.adrbnymellon.comand search for the LB-Shell PLC (Formerly Intelligent Energy Holdings PLC) profile page. You can contact BNY Mellon with questions at +1 212 815 2267 or at email@example.com
The ADR ratio represents the number of ordinary shares that are represented by each ADR. In the case of LB Shell PLC, every 1 LB Shell PLC ADR represents 5 LB Shell PLC ordinary shares.
The ability to trade and/or issue ADRs in the U.S. makes a company’s shares more accessible in the US and allows a company to build its corporate visibility within the U.S., broaden, diversify and expand the shareholder base, potentially enhancing overall liquidity.
U.S. investors generally prefer to purchase ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to U.S. market conventions and in U.S. dollars. One of ADRs’ main advantages is the facilitation of diversification into foreign securities. ADRs also allow easy comparison of securities of similar companies as well as access to price and trading information.
onverting ordinary shares into ADRs must be done through a broker, investment advisor or through BNY Mellon. Investors should seek professional advice prior to making any conversion.
If you hold via a broker, bank or nominee then check with them directly. If you are a registered holder, please contact BNY Mellon Shareowner Services +1 888 BNY ADRS, or for international calls at +1 201 680 6825