Aer Lingus, one of the more tightly-held stocks on the Iseq, is set to expand its shareholder footprint Stateside with the launch of a Depository Receipts programme for US investors. DRs allow investors to buy stocks in foreign companies through their local stock exchange and in their local currency, thus avoiding the administration and exchange rate issues that could otherwise make such investments unfeasible.
The airline joins a number of other Irish-listed companies that can already be bought via DRs, including Ryanair, Kerry, Greencore, Bank of Ireland and CRH. Elan has long seen a significant batch of its share trade being conducted over the medium.
In this instance, the programme is being launched by BNY Mellon, with the company citing demand from US investors. The scheme will be "unsponsored", which means Aer Lingus has no involvement in its establishment. BNY Mellon has previously established similar programmes for companies including DCC, FBD and Grafton.
Global value
American Depository Receipts (ADRs) are big business, with some $16.6 billion in Irish shares traded through the medium last year, according to BNY Mellon. In the first quarter of 2013, the global value of DRs traded was $680 billion, up 14 per cent on the same period of last year .