Where are Ioneer’s ADRs traded and under what ticker?
Ioneer’s listed ADRs are traded on Nasdaq with ticker IONR.
What is an American Depositary Receipt (ADR)?
American Depositary Receipts (ADRs) are negotiable U.S. securities issued by a U.S. bank, referred to as a “depositary bank,” that typically represent a non-U.S. company’s equity. ADRs trade freely in global markets and facilitate cross-border trading.
ADRs allow non-U.S. companies to make their shares available outside their home markets and allow investors in the U.S. and elsewhere to easily invest in companies on a more global basis.
What is an ADR ratio & how is the ADR price determined?
An ADR program often uses a ratio to reflect a USD price which will differ to its primary home market. One reason being, it ensures the ADR price is relevant to the wider market, including institutional shareholders who have investment mandate considerations.
An ADR ratio provides the number of underlying shares represented by one ADR. One (1) Ioneer ADR represents forty (40) ordinary INR shares on the Australian Securities Exchange (ASX). The two securities trade very close to parity once the ADR ratio and foreign exchange aspects are accounted for.
What are the benefits of ADRs to United States investors?
Investors in the United States can benefit from holding ADRs rather than ordinary shares in the issuer’s home market, because ADRs trade, clear and settle according to United States market conventions.
ADRs allow U.S. investors to buy non-U.S. securities and hold these in their U.S. brokerage accounts. ADRs also allow access to price and trading information, U.S. dollar dividend payments and corporate action notifications.
How can I purchase Ioneer ADRs?
Ioneer ADRs can be purchased through a typical broker, just as you would to buy other U.S. securities. You cannot buy ADRs directly from Ioneer.
Who is the depositary bank for Ioneer’s ADRs?
Is there a cost to hold ADRs?
The Bank of New York Mellon may charge an annual Depositary Service Fee of up to U.S.$0.05 per ADR. This is typically collected from the broker or other intermediary that holds the ADRs on your behalf. Your broker may pass this fee on to you directly or it may be part of the annual fee that you pay to maintain your brokerage account.
Section 5.9 of the ADR Deposit Agreement discloses all applicable fees. A copy can be found by visiting here.
What is the difference between a registered holder and a beneficial ADR holder?
A registered holder is one whose name appears on the books of the depositary. The registered holder is considered the owner of the record. A beneficial holder is one whose holdings are registered in a name other than his or her own, such as the name of the broker, bank, or nominee.
I did not receive a certificate with the purchase of my ADRs. How can I obtain a traditional certificate?
For registered owners, ownership is registered by the depositary bank and is evidenced by an account statement provided by the depositary.
Registered owners can hold physical ADR certificates. Please contact BNY Mellon for more information.