Wider shareholder pool

Auckland International Airport has potentially increased its pool of shareholders by establishing an American depository receipt programme.

The ADRs were popular among New Zealand's largest listed companies but there had been a gap recently, Craigs Investment Partners broker Chris Timms said.

ADRs were a way for overseas investors to get access to New Zealand companies without having to buy the shares directly on the NZX50.

''This takes all the issue away from cross-border investments. Each ADR is the equivalent to 10 shares, the dividend is in US currency and the ADR price is driven by the underlying share price converted for currency.''

Airport companies were often sought-after investments and Auckland Airport would likely fit that category, he said. Sydney Airport was a sought-after investment.

Auckland Airport acting chief financial officer Phil Neutze said the ADR programme did not involve the issuing of any new shares or the raising of new capital by the company.

The ADRs could be traded like shares of US-based companies.

Deutsche Bank Trust Co Americas had been appointed the depositary bank for the programme, which replaced the current unsponsored ADR programmes, he said.

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