Trustco turns on charm for US investors, upgrades ADR programme
Trustco Group Holdings Limited has announced plans to upgrade its American Depositary Receipts (ADR) programme to level three in order to expand its presence in the United States of America (US) capital markets.Trustco's ADR programme began in 2014 as a level one programme through the Bank of New York Mellon, and was enhanced in 2019 with a real-time level one sponsored ADR programme on the OTCQX Best Market.
With this upgrade, the company will have greater access to North American investors. Additionally, level three ADRs can be listed on major US stock exchanges such as Nasdaq or the New York Stock Exchange (NYSE), providing higher visibility and further liquidity for Trustco's securities. This level of ADR can be freely traded by both retail and institutional investors in the US market.
Global stage
Quinton Z van Rooyen, Trustco's deputy CEO, elaborated on the importance of this move.
"This proposed upgrade to a level three ADR programme is not just about accessing capital; it's about positioning Trustco and Namibia on the global stage. We expect the upgraded ADR programme to open doors to a larger pool of sophisticated investors. Young professional Namibians would be able to gain valuable Wall Street experience right here in Namibia, without needing to relocate to the US. It's a testament to our belief in the potential of African companies to compete on the world stage."
To prepare for the upgrade, Trustco has assembled US-specific auditors, US securities counsel, IR specialists and approved international valuators. The company plans to maintain its primary Johannesburg Stock Exchange (JSE) listing, as well as its Namibian Stock Exchange (NSX) and OTCQX listings. Current shareholders will have the option to convert their existing ordinary shares into ADRs.
This announcement comes in tandem with Trustco's recent agreement with Riskowitz Value Fund (RVF), a long-term US-based investor in Trustco. On 16 April, Trustco entered into a non-exclusive agreement with RVF to invest up to US$100 million of hybrid capital into the company.