Record levels of liquidity and an increase in new depositary receipt (DR) programs were highlights of the American and global depositary receipt (DR) market, according to BNY Mellon’s 2011 Mid-Year Market Update.
“Uneven equity markets and divergent economic outlooks between the developed and emerging markets led to record DR trading volume during the first half of 2011,” says Michael Cole-Fontayn, CEO of BNY Mellon’s Depositary Receipt Division. “Market conditions allowed emerging market issuers to raise capital through primary and follow-on DR offerings, nearly tripling the amount of DR capital raised year-over-year. A record 3,400-plus DR programs are now available to the world’s investors.”
A record 3,413 DR programsup from 3,214 a year agofor issuers from 83 countries were available to investors this year. According to the report, DR trading volume reached 80.5 billion DRs valued at $1.91 trillion, increases of 3.1% and 4.5%, respectively, compared to a year ago. Both figures represent all-time midyear highs.
Average deal size this year was much larger when compared to the 44 transactions completed through June 2010. Thirty-nine DR capital raisings worth $11.7 billion were recorded from issuers in 11 countries, nearly triple last year’s value raised by the halfway mark.
The BNY Mellon ADR Index(SM) was up 3.8% year-to-date and up 30.0% compared to a year ago. In total, 19 of the 34 DR country indices saw positive returns year-to-date, led by Germany (+15.9%) and France (+14.8%), BNY Mellon says.
All statistics from the report are as of June 30.
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