Hi Finance/Banking types, does anyone know if this means the ADR's are still a level 1 ADR or have we moved to a different level
" ADR Levels
ADRs are generally categorized into three levels, depending on the extent to which the foreign company has accessed the U.S. markets:
Level I - This is the most basic type of ADR where foreign companies either don't qualify or don't want to have their ADR listed on an exchange. This type of ADR can be used to establish a trading presence but not to raise capital. Level I ADRs are found only on the over-the-counter market have the loosest requirements from the Securities and Exchange Commission (SEC) – and they are typically highly speculative. While they are riskier for investors than other types of ADRs, they are an easy and inexpensive way for a foreign company to gauge interest for its securities in the U.S.
Level II – Like Level I ADRs, Level II ADRs can be used to establish a trading presence on a stock exchange, and they can’t be used to raise capital. Level II ADRs have slightly more requirements from the SEC than do Level I ADRs, but they get higher visibility and trading volume.
Level III – Level III ADRs are the most prestigious of the three ADR levels. With these, an issuer floats a public offering of ADRs on a U.S. exchange. They can be used to establish a substantial trading presence in the U.S. financial markets and raise capital for the foreign issuer. They are subject to full reporting with the SEC."
