Frequently Asked Questions (FAQ) about ADRs
The following 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.
- What is an American Depositary Receipt (ADR)?
- ADRs are a negotiable US dollar denominated certificate representing ownership
of shares in a non-US company. Gemalto’s ADRs represent Gemalto’s ordinary
shares 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 and have the right to vote on
shareholders resolutions, at the Company’s discretion. 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. Every ordinary Gemalto share represents two Gemalto ADRs, i.e. the ratio
is 1:2.
- 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. One of an ADRs’ top advantages is the facilitated
diversification into foreign securities. ADRs also allow easy comparison to
securities of similar companies as well as access to price and trading
information.
- What types of companies issue ADRs?
- ADR issuers are typically large multinational corporations. Any non-U.S. company
seeking to raise capital in the U.S. or increase their base of U.S. investor can
issue ADRs.
- Is it easy to get information and updates on Gemalto?
- Information is widely available on Gemalto’s website
www.gemalto.com. Investors
can sign up to receive press releases in English on the Company’s website.
Trading information is readily available on the Pink Sheets website and our
depository bank’s website:
https://www.adr.db.com/drweb/public/en/content/dr_details.html?identifier=8346&identifierType=DRID
- Where are Gemalto ADRs traded?
- Gemalto ADRs are traded in the Pink Sheets Electronic OTC (over the counter)
market. You can refer to:
http://www.pinksheets.com and
https://www.adr.db.com/drweb/public/en/content/dr_details.html?identifier=8346&identifierType=DRID
- Who is Gemalto’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 and facilitates the exercise
by the ADRs holders of their voting rights.
- How are ADRs related to Gemalto’s ordinary shares?
- Every Gemalto Ordinary share represents two Gemalto ADRs, i.e. the ratio is 1:2
- What is the difference between a Registered holder and a Beneficial ADR holder?
- A registered holder is one whose name appears on the books of the depositary.
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 through Deutsche Bank Trust Company Americas. You can contact
Deutsche Bank broker services desk on +1 212 250 9100 or +44 207 547 6500
- What is a sponsored Level 1 ADR program?
- In a Level 1 ADR program, the ADRs are not listed on a US stock exchange, but
are traded in the US Over-the-Counter (OTC) market, mainly on the Pink Sheets
electronic market.
- What is the U.S. Over-the-Counter (OTC) market?
- The U.S. OTC trading in Level 1 ADRs is carried out by market makers using
inter-dealer quotation services of Pink quote (operated by Pink OTC Markets) ".
- What is “Pink Sheets”?
- The Pink Sheets is a centralized electronic quotation system that collects and
publishes market maker quotes for OTC securities in real-time
(www.pinksheets.com). Pink Sheets is neither a Registered Stock Exchange nor a
Broker-Dealer.
- 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
Email:
DB@amstock.com
- Toll-free number: +1 866 706 0509
Direct Dial: +1 718 921 8137
- To receive your Gemalto Annual Report, or other shareholder or company
information please contact Investors Relations via Gemalto’s website
www.gemalto.com.
- To receive Notice of meeting and related proxy materials, please contact our
transfer agent if you a registered holder:
- How may I find out corporate action information on Gemalto?
- For corporate action information, please visit:
www.gemalto.com or
http://www.adr.db.com.
Search for Gemalto and under Company Public View section, select Corporate
Actions Calendar. Alternatively you may contact Deutsche Bank Trust Company
Americas Shareholder Services on toll-free number +1 866 706 0509 Direct Dial:
+1 718 921 8137.
- How do I obtain historical share prices of Gemalto’s ADRs, for the purpose of
completing my tax return?
- Historical share prices for Gemalto’s ADRs can be found on Deutsche Bank website
(http://www.adr.db.com) or on the Pink Sheet website (http://www.pinksheets.com)