ADV Group enters the OTCQX market in the USA
ADV Group enters the OTCQX market in the USA ADV Group debuted on 25 April 2012 on the American OTCQX over-the-counter market. This is the third-largest market in the US after the NYSE and NASDAQ – the value of its transactions in 2010 exceeded 144 billion USD. ADV Group is the first Polish Company whose ADR has been listed on OTCQX.The OTC (over-the-counter) platform is a non-exchange market, allowing traders to buy and sell the stock of companies that are not listed on the exchanges in the U.S. There are over 10,000 securities in circulation on the OTC platform with a combined value exceeding 10 trillion USD, including 280 companies on OTCQX International.
“This is a completely innovative solution for operating on capital markets, which we have never seen before in relation to Polish technology companies. Our goals in this area are closely related to our plans to offer ADV Group’s products and services to customers across the Atlantic. Entering the OTCQX market not only confirms the reliability and transparency of the ADV Group, but also more importantly increases the liquidity of our stock and facilitates American investors' access to it. We are planning soon to intensify our operations on the North American continent – companies in the group are already offering the latest and most creative marketing and Internet solutions, which have been met with approval in Europe,” said Konrad Pankiewicz, president of ADV Group.
OTCQX is intended solely for the best exchange-listed companies from outside the U.S., which guarantee maximum transparency for investors, fulfil the highest financial standards, have been bonded by American institutions, and are listed on an authorized stock exchange outside the United States. The average daily volume of transactions per company on the OTCQX exchange is 11.9 million USD. The OTCQX market is used by companies such as Marks&Spencer, Allianz, Adidas, Roche, BASF, BNP Paribas, Ahold, Imperial Tobacco, AXA and Air France.
“Proponents of foreign listing of companies (cross-listing) argue that this type of listing is advantageous both to the companies and to the investors. Thanks to the American Deposit Receipts and international listing, a company can diversify and expand its base of investors, which can potentially lead to improvement of its liquidity”, says Richard Murphy, General Manager Capital Markets of Australian’s ASX Limited. ASX is one of the ten largest exchange groups in terms of market capitalisation. The ASX group was created as a result of the merger of the Australian Stock Exchange Ltd and the SFE Corporation Ltd, the Holding Company for the Sydney Futures Exchange.
Depository Receipts (DRs) were first released by JP Morgan in 1927. In the past decade, DR programmes have become a popular instrument among Australian stock issuers, allowing financial resources to be obtained from outside the national market. A depository receipt is a negotiable capital instrument representing an equity stake in a security. Deposit receipts give companies the opportunity to expand their operations by exposing them to international capital markets. DR programmes can be organised in the form of American deposit receipts (ADRs), that allow companies from outside the United States access to American capital , or in the form of global deposit receipts, which allow companies access to capital from outside the markets of their home countries. DR programmes are an attractive instrument for investors, as they allow for international diversification, without the need to make purchases on international markets.
DRs can be either secured or unsecured. The dominant form is the secured programme. Companies choosing to issue within the secured DR programme make use of the services of a deposit bank, which manages relations with investors.
The ADV Group noted a 93 million PLN rise in consolidated revenues after four quarters of 2011, which meant an increase of 74% over 2010. Net profit reached a record level for the company of 5.45 million PLN and was almost 115% greater than in 2010.
