J.P. Morgan has been named depositary bank for SBI Holdings, Hong Kong Depositary Receipt (HDR) listing on the Stock Exchange of Hong Kong, with the Japanese financial group, marking a significant milestone as the first Asian company to execute an HDR listing.
SBI raised US$207 million after issuing 20,000,000 HDRs at an issue price of US$10.35, equivalent to HK$80.23 per unit, which includes the over allotment option exercised by the underwriters. With the development of its domestic Japan business largely complete, SBI will use the capital raised to expand its operations internationally, with a specific focus on high growth markets in Asia.
J.P. Morgan Worldwide Securities Services (WSS), a division of JPMorgan Chase Bank, has $16.6 trillion in assets under custody and $7.3 trillion in funds under administration.
J.P. Morgan has now acted as depositary bank for both HDR listings in Hong Kong, with the SBI partnership following Vale S.A.s (Vale) listing by introduction in December 2010.
Kenneth Tse, Asia Pacific head of J.P. Morgans depositary receipts group noted that the success of SBI and Vale would likely drive further interest in HDRs as a listing platform in Asia.
An HDR listing is certainly an important consideration both for global companies looking to deepen their presence in Asia and Asia-based names wanting to broaden their operations across the region, says Tse. Hong Kong is perfectly placed alongside Chinas dynamic economy, and as such, represents a logical platform for companies seeking to tap into the Greater China growth story.