John Keells Holdings has announced the successful completion of the delisting of its Global Depositary Receipt (GDR) programme from the Luxembourg Stock Exchange.
In November 2023, the company’s board decided to terminate the GDR programme due to the relatively low number of GDRs in circulation and their minimal impact on trading in the company’s securities.
GDRs are financial instruments that allow companies to raise capital from international investors by representing ownership in a foreign company. Issued by a bank in a foreign country, GDRs are typically denominated in US dollars and traded on international stock exchanges.
While GDRs offer advantages such as access to a broader pool of investors, improved liquidity, and a lower cost of capital, John Keells Holdings determined that the programme no longer aligned with its strategic objectives.