JKB enters American Secondary Market
The C.E.O. of Jordan Kuwait Bank announced that the Bank has obtained the approval of the American Securities Commission to list its bank shares in America’s secondary market, as American Depositary Receipts (ADRs) - Level I. The bank’s ADRs will be traded over the counter (OTC) in the American market. The Commission also approved the exemption of the bank from complying with the American disclosure requirements.
The ADR program was established in cooperation with the Bank of New York, who is the depositary bank for JKB’s sponsored ADRs. The Amman Stock Exchange will purchase an equivalent number of shares to the ADRs traded in US secondary market, at the rate of five shares for 1 ADR. The ADRs are treated as American securities and are denominated in U.S. dollars.
The main benefit of the program is the possibility it offers foreign investors to purchase Jordan Kuwait Bank shares in the U.S., which can thereafter easily be converted into cash in the local market. The program would thus enlarge the market for Jordan Kuwait Bank shares through a broadened and a more diversified investor base.
Jordan Kuwait Bank is one of the first Jordanian banks to establish such a program, enabling the bank’s shares to be traded both among Jordanians, and foreign investors in the U.S., therefore enhancing the bank’s image abroad. — (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com)