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21
Year-End 2014 Report
| Regional Trends
Asia Pacific
Capital Raisings
Asia Pacific was the most active region globally for DR capital
raising in 2014 dominated by strong activity out of China.
Thirty-one issuers raised approximately $31.7 billion of DR
capital of which $29.7 billion (94%) was through IPOs. China
was the most active market for IPOs, with 15 issuers raising
$29.0 billion, including Alibaba Group’s historic $25 billion
IPO event on the NYSE.
Approximately $1.9 billion of DR capital was raised by 13
issuers through follow-on offerings. China was the most active
market for follow-on capital raising with 9 issuers raising
$1.2 billion in DR form. The largest follow-on offering was for
Inotera Memories, a Taiwanese semiconductor manufacturer,
raising approximately $418 million.
Trading Volumes
DR trading volumes increased by 21% (or 7.2 billion) with 41.6
billion DRs traded in 2014 versus 34.5 billion DRs during the
prior year period. This was mainly due to a 4.8 billion increase
in trading volumes of DRs listed on the NYSE and a 3.7 billion
increase in trading volumes of programs listed on NASDAQ.
In terms of country, the majority of the increase in DR trading
volume was from Chinese DR programs (8.1 billion DRs), which
was partially offset by a decrease from Japanese (0.5 billion
DRs) and Indian (0.4 billion DRs) DR programs.
New Programs
1, 2
There were 38 new sponsored programs announced in the
region: 17 U.S.-listed ADRs (7 listed on NYSE and 10 listed on
NASDAQ), 17 Level 1 ADRs and 4 GDRs (including bifurcated
programs). China was the most active country with 15 new
programs (all U.S.-listed ADR programs), followed by Australia
with 10 new programs (all Level 1 ADR programs).
Chinese issuers, Alibaba Group and JD.com, had the two most
notable IPO transactions in the region. Alibaba Group’s IPO
on the NYSE was not only the largest DR offering in 2014,
but also the largest IPO in history. JD.com listed on NASDAQ,
raising $2 billion in capital.
Unsponsored Programs
Total trading volumes for Asia Pacific unsponsored programs
were up 45% (or 374 million DRs) with 1.2 billion DRs traded
in 2014 versus 834 million DRs in 2013. Japan was the most
active country comprising 66% (or 798 million DRs) of total
unsponsored trading volume and 29% (or 237 programs) of
total program count from the region. Overall, total trading
volumes for Asia Pacific unsponsored programs rose due to
increased trading volume activity in the following Japanese
unsponsored DR programs: Tokyo Electron Ltd (+260 million
DRs) and SoftBank Corp (+91 million DRs).
Market Performance
Citi Depositary Receipt Services maintains the AsiaPac
ex-Japan Liquid DR Index (CLDRAPAC) and AsiaPac Growth
Economies Liquid DR Index (CLDREAS) to gauge investor
sentiment toward Asia Pacific. In 2014, CLDRAPAC was
flat and CLDREAS increased by 6%. On a long-term basis,
CLDRAPAC and CLDREAS have significantly outperformed the
World ex-U.S. and the S&P 500 since 2001.
1
For bifurcated programs, Reg S and 144A tranches have been counted as separate programs.
2
Program count as of December 15, 2014.