Infra group retains ADR program

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The Manuel Pangilinan-led infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) is sticking to its American Depository Receipts (ADR) program despite low take-up from the time it was launched last year.

Through Deutsche Bank, MPIC set up the level 1 ADR program in August last year to expand its presence among investors in the United States. Level 1 of ADR program is regarded as a noncapital raising activity.

ADRs are negotiable certificates issued by a bank in the US that serve as substitute to a number of shares traded on the US stock exchange, and is considered as a good instrument in obtaining stakes in a foreign firm. David Nicol, MPIC chief financial officer, said that the group is seeing a low take-up on its ADR program.

“It’s pretty low. The investment from Metro Pacific has been well-marketed to the international capital market. People have been very interested in the infrastructure investment in the Philippines and therefore it has attracted a lot of interest from the US,” he said, adding that US investors may not have been widely enlightened about the program yet.


“We’ve had very little take-up of the ADR. We will stick to the program but for now, it’s not much we’re having,” he further said.

When asked if the group plans to move the ADR program to level two and three, Nicol said there are no plans about that yet since it would require them a lot of compliance.

The ‘Level 2’ of ADR program would allow a company issuer to get full listing on the US stock exchange, while ‘Level 3’ is considered a capital-raising activity where the issuer sells depositary receipts to raise capital.

In August last year, the diversified conglomerate launched its
ADR program “in line with the company’s thrust to broaden its investor base by making its stock available to the widest possible audience.”

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