Level 1 sponsored ADR programme
In September 2016, Lundin Energy established a Sponsored Level 1 American Depositary Receipt (ADR) programme in the United States.
ADRs are depositary receipts traded in the United States over-the-counter market (OTC). Each ADR represents an ownership interest in one ordinary share in Lundin Energy.
Deutsche Bank is acting as the depositary bank for this ADR programme.
Ticker Symbol: LNEGY
Structure: Level 1 ADR
Exchange: Over-the-counter (OTC)
Ratio (ADR:Ordinary Lundin Energy share): 1:1
ADR CUSIP: 55037R 200
ADR ISIN: US55037R2004
Depositary Receipt contact:
London: +44 (0) 20 7547 6500
New York: +1 212 250 9100
Hong Kong: +852 2203 7854
The following is for informational purposes only and should not be relied upon for the purpose of making investment decisions concerning any securities of Lundin Energy. This information does not contain all information that may be important to you. For more complete information, we highly recommend that you read the entire deposit agreement and the form of American Depositary Receipt, which contains the American Depositary Shares terms, and seek your own investment, legal and tax advice.
What is an American Depositary Receipt (ADR)?
ADRs are a negotiable US dollar denominated certificate representing ownership of shares in a non-US company. Lundin Energy’s ADRs represent Lundin Energy’s ordinary share deposited with the depositary bank, to underlie such certificates and carry the rights attached to them as detailed in the Depositary Agreement. Holders of ADRs receive dividends in US dollars if and when declared by the Company and have the right to vote at shareholder meetings, if duly registered to do so. The term ADR and ADS are often used interchangeably. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by US investors.
What is an ADR ratio?
This is the relation between the number of ADRs and the number of ordinary shares. Each one Lundin Energy ADR represents one Lundin Energy ordinary share.
What are the benefits of ADRs to US investors?
U.S. investors may prefer to purchase ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to U.S. market conventions. ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information.
Why did you establish an ADR programme?
Lundin Energy established the ADR programme to make it easier for US investors to buy the shares of Lundin Energy.
What effect do you expect the ADR programme to have on your shareholder base?
We hope that the ADR program encourages US investors to buy shares in Lundin Energy as it will now be easier for them to do so.
Is it easy to get information and updates on the Lundin Energy ADR?
Trading information is readily available on the Depositary bank’s website:
Where are Lundin Energy ADRs traded?
Lundin Energy ADRs are traded Over-the-counter (OTC)
What is the OTC market?
The OTC market is a decentralized market of securities that are not listed on a stock exchange. Trading on the OTC market occurs via a network of dealers who carry inventories of securities to facilitate the buy and sell orders of investors.
Who is Lundin Energy’s depositary for ADRs?
Deutsche Bank Trust Company Americas. The depositary bank plays a key role in issuance as well as cancellation of ADRs. It also maintains the ADR holder register, distributes the dividends in US dollars (if applicable) and facilitates the exercise by the ADRs holders of their voting rights (if applicable).
What currency are Lundin Energy ADRs denominated in?
Lundin Energy ADRs are denominated in US dollars.
Are you issuing extra shares of Lundin Energy AB? Does the ADR programme increase Lundin Energy’s share capital?
No, this is not a share issue and the ADR program does not increase Lundin Energy’s share capital. The share capital will remain the same as prior to the launch of the ADR programme.
What is the difference between a Registered ADR holder and a Beneficial ADR holder?
A registered holder is one whose name appears on the books of the depositary bank. The registered holder is considered the owner of record. A beneficial holder is one whose holdings are registered in a name other than their own, such as in the name of a broker, bank or nominee.
How do I convert my ordinary shares into ADRs?
Converting ordinary shares into ADRs must be done through a broker, investment advisor, or for registered holders through Deutsche Bank Trust Company Americas. You can contact Deutsche Bank broker services desk on +1 212 250 9100 or +44 207 547 6500
How may I check how many ADRs I hold?
If you do not hold via a broker, bank or nominee, please contact our transfer agent:
Deutsche Bank Shareholder Services
American Stock Transfer & Trust Company
Peck Slip Station
P.O. Box 2050
New York, NY 10272-2050
Toll-free: +1 866 249 2593
Direct Dial: +1 718 921 8137