US investors are now allowed to trade the shares of SM Investments Corp. (SMIC) in their country as the Henry Sy-led conglomerate launched late on Monday its American Depositary Receipt (ADR) Level 1 program.
SMIC also appointed the Bank of New York Mellon as its depository for the program.
Under the program, ADR securities issued in the US representing SMIC common shares can now be traded over-the-counter of the aforementioned depository under the ticker symbol SMIVY. One SM ADR represents 0.5 common shares of SM.
This facility, according to the group, will allow US investors to trade SMIC common shares in their own time zone and to settle their transactions locally in the Bank of New York Mellon. As such, it offers convenience and reduces currency risk on the part of the investor as they acquire the ADR in US dollars.
SMIC said that the ADR program will help the group diversify its shareholder base, as well as broaden its presence globally.
“We are delighted to work hand-in-hand with BNY Mellon through this sponsored ADR program, which aims to actively engage and support global investors. This initiative affirms SM’s desire to reach out and better service the needs of more investors at a time when interest in the Philippines among US investors is fast building up,” said Jose Sio, SMIC chief financial officer.
“SM is widely regarded by international investors as a strong proxy for the Philippine growth story, and we believe that it will continue to be an attractive investment proposition,” he added.
BNY Mellon is the world’s largest depositary for ADRs and global depositary receipts.
SMIC, on the other hand, is one of the country’s largest holding companies with a market capitalization of approximately $17.41 billion. The group has market leading interests in shopping mall development and management, retail, real-estate development and banking, and a growing interest in hotels and convention centers.