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GDRs  

Global Depository Receipts (GDRs) are negotiable certificates that usually represents a company’s publicly traded equity. They are also considered as an equity substitute for the local shares that can be used to list on a foreign stock exchange e.g. London, Luxembourg, New York etc. GDRs are often launched for capital raising purposes and they are as liquid as the underlying shares since the two are interchangeable.

Corporate Advantages of GDRs include:

  • A GDR program provide a simple means of diversifying a company’s shareholder base and accessing the international market.
  • To enlarge the market for the local company’s shares through a broadened and a more diversified investor exposure which may increase or stabilize the share price.
  • It allows capital raising on a scale which might prove to be impossible in the local market.
  • It strengthens the issuer’s name recognition in the international market and thus enhance the image of the company’s products , services in a market place outside its home country.
  • GDRs can be used as an equity financing tool in M&As transactions.

- For Depository Receipts Procedures at EGX (in Arabic), please click here 
- Decision No. (191) For The Year 2017 Concerning The Amendments For Rules & Operational Procedures Of Foreign Certificates (in Arabic), please click here 
- Decision No. (177) For The Year 2016 Concerning The Amendments For Rules & Operational Procedures Of Foreign Certificates (in Arabic), please click here 
- Decision No. (131) For The Year 2015 Concerning The Amendments For Rules & Operational Procedures Of Foreign Certificates (in Arabic), please click here 


For more information about Egyptian GDRs traded on foreign markets, please click here

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