An ADR is a US dollar denominated security representing shares in a non-US company, which allows American investors to indirectly hold shares and to trade them on securities markets in the United States without the inconvenience of cross-border and cross-currency transactions.
As the depositary bank, J.P.Morgan will issue ADR certificates representing DMGT 'A' Ordinary Non-Voting shares, with dividend rights attached, and will distribute dividends. The ADRs are denominated and pay dividends in US dollars and may be traded like regular shares. As the ADR ratio is 1:1, the ADR price directly reflects the price of an underlying London listed share.
The establishment of the ADR facility reflects the increasingly international nature of DMGT's business, and particularly the significant presence in the US. North America currently represents approximately a quarter of group revenues and over half of its profits.
