EGC Corporate Governance Practices (May 2018)

EGC Corporate Governance Practices: A Survey and Related Resources PAGE 6 Figure 7 : N=200. FPIs may choose to issue and sell their shares directly or through American Depositary Shares or Receipts (“ADRs”). 6 Of the 200 FPI EGC IPOs completed during the period, approximately 63.5% issued common or ordinary shares directly to investors in the IPO, and the balance issued ADRs in their IPOs. Of the 81 FPIs that issued ADRs, 42 of the issuers were incorporated in the Cayman Islands. Approximately 25.5% of the FPI EGCs had securities that were listed on both a foreign exchange as well as a U.S. exchange. Figure 8 : N=200. 6 An ADR is a negotiable instrument issued by a U.S. depository bank that represents an ownership interest in a specified number of securities that have been deposited with a custodian, typically in the issuer’s home country. ADRs can represent one or more shares or a fraction of a share. 72 22 10 9 11 15 8 8 6 6 33 FPI Country of Incorporation (By Frequency) Cayman Islands Israel Bermuda Republic of the Marshall Islands United Kingdom British Virgin Islands Canada The Netherlands Belgium France All Others Ordinary Shares; 114 ADRs; 68 Ordinary Shares and ADRs; 13 Warrants; 5 Securities Issued by FPIs (By Frequency) Ordinary Shares ADRs Ordinary Shares and ADRs Warrants