J.P. Morgan launched the first depositary receipt program in Asia in 1961 for Sony and serves as depositary bank for leading companies throughout the region. With a 44% market share in DR capital raising in 2009, J.P. Morgan worked on many of the key deals in APAC, confirming its status as market leader.
In APAC, J.P. Morgan acted as the depositary bank for three of the five largest ADR IPOs in 2009, including the $1 billion IPO of Shanda Games. This complements J.P. Morgan’s global success in emerging markets, as the bank was also the depositary bank for the largest DR IPO last year, the $4.5 billion New York-listing of Brazil’s Banco Santander Brasil.
DR programs managed by J.P. Morgan, both globally and in APAC, are on average more liquid compared to programs managed by its competitors. The average trading value of a J.P. Morgan DR program in APAC is $1 billion and the average trading volume is 74 million shares.
Further recent successes include:
New Mandates: J.P. Morgan became the successor depositary bank for United Microelectronics Corporation’s (UMC) ADR program, which is Taiwan’s second-largest DR program. This was the largest 2009 program switch in Asia. Also in 2009, leading Chinese companies Tsingtao Brewery and China Real Estate Information Corporation selected J.P. Morgan as their depositary bank.
Renewed Mandates: J.P. Morgan’s high-profile clients such as Sony, Nissan Motor, Korea Electric Power Corporation (KEPCO) renewed their contracts in 2009.
Continued Innovation: J.P. Morgan introduced I&C Lock, a patented product that allows broker-dealers to purchase a contract that establishes a fixed rate for future DR issuance or cancellation without any obligation to execute the transaction.
Strong Start to 2010: In the first few weeks of the year, J.P. Morgan was selected as depositary bank by IFM Investments Limited and Insprit.
D.C.