ADR program
What is an ADR?
ADR stands for American Depository Receipt and these securities represent the underlying common shares of foreign companies. You can think of the ADR as a foreign stock repacked to work like a US stock so that an investor can track the share price and receive dividends in dollars.
What is the difference between Sandvik's ordinary shares and ADRs?
Sandvik has one share class, which trade on the Stockholm Stock Exchange in Swedish Krona. The ADR is simply a certificate representing one Sandvik share held in custody by Deutsche Bank, which is the ADR depositary bank and performs the function of transfer agent and registrar. Since the two securities are linked, the stock prices should always reflect each other´s value. This also means that the ADR market is supported by the underlying liquidity of Sandvik on the Stockholm market.
How can I buy shares in Sandvik?
Although the primary listing for Sandvik shares is in Stockholm, we have created a dollar-denominated US-registered security in order to make it easier for US investors and employees to buy the shares. This type of a security is known as an ADR.
Sandvik's ADR: SDVKY
Sandvik has a sponsored level-1 depositary receipt program. Level-1 depositary receipts are traded in the US on the over-the-counter (OTC) market in the form of pink sheets. The ticker symbol for Sandvik´s ADR is SDVKY and the cusip number is 800212201. Using this information, Sandvik´s ADRs can be purchased through a broker just as you would buy any other stock. Share price information for the ADR can be obtained through a broker, a Bloomberg terminal or by using internet search engines such as www.stockmaster.com. Please note that OTC stock quotes are not published in the newspaper.