Israel’s Delek Group Creates Sponsored ADR Program
Delek Group, one of Israel’s largest companies, introduced a sponsored American depositary receipt program on the OTCQX, the highest tier of the OTC market for companies listed on a non-US exchange that want a cross listing in the US.
The Israeli energy and infrastructure group, whose ordinary shares are listed on the Tel Aviv Stock Exchange, selected Citi as the depositary bank for the program. Each ordinary share is represented by 10 ADRs. Delek previously had an unsponsored ADR program.
“This is an important step in positioning ourselves as a major international group,” says Asaf Bartfeld, CEO of the group. Delek has 1,600 gas stations worldwide, including more than 500 company- operated fuel and convenience stores located in eight US states under a number of regional brands. Delek US operates a refinery in Tyler, Texas.
Delek is Israel’s largest importer and distributor of automobiles. It is also Israel’s largest oil and gas exploration and production company. It has expanded into oil drilling in the US, Vietnam and Russia. The company has insurance and real estate assets, and 10 of its subsidiaries are publicly traded entities on various global markets.
Delek is Israel’s only operator of independent power plants and its second-largest operator of gas stations. IDE, the company’s desalination venture, which is equally owned with Israel Chemical, built the largest desalination plant in the world in Israel.