American Depositary Receipt (ADR)
- What is an American Depositary Receipt (ADR)?
- What are the benefits of ADRs to US investors?
- What types of companies issue ADRs?
- Is it easy to get information and updates on an ADR company?
- Where are CGG ADRs traded?
- Who is CGG' depositary for ADRs?
- What is the difference between a Registered holder and a Beneficial ADR holder?
- How are ADR dividends paid and taxed?
- How can I find out dividend and corporate action information on CGG ADRs?
- How can I buy ADRs via a US Broker?
- How can I buy an via a Direct Purchase or Dividend Reinvestment Plan?
- How can I convert ordinary shares in CGG into CGG ADRs?
An ADR is a negotiable U.S. certificate representing ownership of shares in a non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market. Also, the dividends are paid to investor in U.S.dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. investor, and to provide a corporate finance vehicle for non-U.S. companies.
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What are the benefits of ADRs to US investors?
US investors generally prefer to purchase ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to US market conventions. One of ADRs’ main advantages is the facilitation of diversification into foreign securities. ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information, if listed. ADR holders also appreciate dollar dividend payments and receiving corporate action notifications.
ADRs issuers are typically large multinational corporations. Any non-U.S. company seeking to raise capital in the U.S. or increase their base of U.S. investor can issue ADRs.
Investors receive annual reports and proxy materials in English. ADR issuers generally have full information in English about themselves on their websites, as well as on the main depositary bank websites, and are better tracked by the main U.S. financial websites. ADRs listed on U.S. exchanges provide holders with the same level of information as any other U.S. security. Trading information is readily available and the SEC regulates the Company's disclosure to investor.
The ADRs are listed and traded on NYSE. The trading code is CGG. The CUSIP number is 204386106. The ratio between the ordinary share and the ADR is 1:1.
BNY Mellon. The depositary bank plays a key role in the process of issuance and as cancellation of ADRs. It also maintains the ADR holder register and distributes the dividends in US dollars. For additional information, please visit BNY Mellon’s website at www.adrbnymellon.com or contact the shareholder services department invrelparis@cgg.com.
BNY Mellon
Investor Services Department
Church Street Station
PO Box 11258
New York, NY 10286-1258
United States of America
Call Shareholder Relations at 1-888-BNY-ADRS
International Holders call at +1-201-680-6825
A registered holder is one whose name appears on the books of the depositary. The registered holder is considered the owner of record. A beneficial holder is one whose holdings are registered in a name other than their own, such as in the name of a broker, bank or nominee.
Dividends are paid in U.S. dollars and are generally taxable, just like dividends on U.S. shares. In addition, taxes may be withheld by the ADR company's local government. Depending on individual circumstances, foreign taxes withheld might be applied as a credit against U.S. taxes, or tax reclaim opportunities may be offered. Please contact BNY Mellon to learn more.
For dividend and corporate action information, please visit BNY Mellon’s website at www.adrbnymellon.com. You can enter the company name, CUSIP or symbol in the “Quick Search” field at the top left of the screen to access the CGG DR Profile, which contains recent dividend and corporate action information.
You can buy an ADR through any U.S. broker, just as you would U.S. securities.
Global BuyDIRECT, a Direct Sale/Dividend Reinvestment Plan sponsored by BNY Mellon, offers investors the opportunity to purchase Depositary Receipts at commissions that are typically less than a retail broker. The Global BuyDIRECT Plan is a dividend reinvestment and direct purchase plan open to existing shareholders and new investors. Through the plan, participants can buy initial and additional ADRs, sell ADRs and reinvest dividends.
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For information on the Global BuyDIRECT plan, please visit www.globalbuydirect.com.
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To request plan brochures and enrollment forms for companies offering Global BuyDIRECT, please call: +1-800-345-1612
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Toll Free Telephone for U.S. Global BuyDIRECT participants: 1-888-BNY-ADRS
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Telephone for international callers: +1-210-680-6825
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E-Mail: shrrelations@bnymellon.com
A shareholder wishing to convert Paris Stock Exchange-listed ordinary shares in to ADRs should, in the first instance, request that their broker contact the ADR Broker Desk at The Bank of New York Mellon. Contact details can be found below:
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Alternatively, the shareholder may contact the ADR Broker Desk at BNY Mellon directly.
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When contacting the ADR Broker Desk, the broker will be asked to confirm the following information:
- the number of ordinary shares the shareholder wishes to convert into ADRs (based on the current ratio of 1 ordinary share equal to 1 ADR);
- the custodian name, account name and account number of the account in France from which the ordinary shares will be delivered;
- the number of the DTC account in the US to which the shareholder wishes their ADRs to be credited. If the shareholder does not have a DTC account, they will need to appoint a nominee (e.g. a broker) to hold the ADRs on their behalf.
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Once these details have been confirmed, the broker (or shareholder) should instruct the delivery of the ordinary shares from their custody account in France.
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On the day that the local custodian confirms to BNY Mellon that the ordinary shares have settled in BNY Mellon’s account, BNY Mellon will instruct the delivery of the equivalent amount of ADRs to the requested DTC account.
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A fee per ADR issued is payable to BNY Mellon upon the delivery of the ADRs. Most commonly, when BNY Mellon delivers the ADRs to the specified DTC account, this is done on a delivery versus payment (DVP) instruction against the conversion fee. If an alternative method of payment is required, please contact the ADR Broker Desk for further details. Where the DTC account is operated by a broker on behalf of a shareholder, the broker should confirm to the shareholder that it has received the ADRs and is holding them on his/her behalf.