GDR

GDRs serve a similar purpose to ADRs but are designed for broader international distribution rather than specifically for US markets. They enable companies to raise capital and build investor bases in multiple international markets simultaneously. GDRs typically trade on major European exchanges like London Stock Exchange or Luxembourg Stock Exchange and are often denominated in US dollars or euros. The structure involves a depositary bank holding the underlying shares and issuing certificates that represent those shares. GDRs provide companies with access to international capital while offering investors exposure to foreign companies through familiar local market mechanisms and regulatory frameworks.