ADR Holders Guide
An American Depositary Receipt (ADR) is a negotiable instrument issued by a depositary bank that represents ownership in securities of a non-U.S. company; in essence it is a mechanism that helps facilitate U.S. trading of non-U.S. securities. ADRs provide U.S. investors with a convenient way to invest in overseas securities. ADRs are quoted and traded in U.S. dollars on a U.S. securities exchange such as NASDAQ Global Select Market (NASDAQ) and the New York Stock Exchange (NYSE.)
An American Depositary Share (ADS) is a U.S. share, evidenced by an ADR, which represents a specified number of underlying shares on deposit in the issuer’s home market. The terms ADR and ADS are often used interchangeably.
ADRs can be held by both retail investors and institutions.
ADR holders are generally entitled to the same rights as the underlying shareholders, subject to the terms the right to receive dividends in U.S. dollars, attend Shire shareholder meetings, and the right to vote on important matters such as corporate actions.
The number of underlying shares represented by one ADR. The ratio is typically depicted as, for example, 3:1, or three underlying shares representing one ADR.
Shire’s ratio is 3:1, i.e. three underlying shares representing one ADR.
Shire maintains a Level II Depositary Receipt programme which trades on the NASDAQ with each ADR representing three (3) Shire plc ordinary shares.
Shire’s ADRs trade on NASDAQ under the ticker symbol “SHPG”.