Severn Trent looks to make itself more attractive to US investors

MIDLANDS utility Severn Trent has tried to boost its investment potential in the United States by setting up a new sponsored American depositary receipt programme.

After establishing Level I of the programme, trading of the ADRs is now under way in the United States.

ADRs are negotiable certificates, issued in registered form, and represent an interest in the shares of a non-US company. ADRs are traded and settled in US dollars.

Coventry-based Severn Trent said it believed the ADR programme would benefit existing shareholders by making its shares more accessible to US investors and provide the firm with increased visibility within the US market.

Ordinary shares in Severn Trent, in the form of ADRs, will trade on the Over-the-Counter (OTC) market in the United States on the basis of 1 ADR to 1 Severn Trent ordinary share.

Severn Trent has appointed The Bank of New York Mellon to act as the Depositary to establish and maintain the ADR facility.