Argentine Electric Company Lists ADRs In New York.
Pampa Energía, which generates, transmits and distributes electricity in Argentina, listed American depositary receipts on the New York Stock Exchange on October 9, and its chairman, Marcos Marcelo Mondlin, rang the opening bell.
Including Luxembourg-incorporated Ternium and Tenaris, which have management in Argentina, Pampa Energía is the 14th Argentine company to list on the NYSE. These companies have a total market capitalization of $50 billion.
Pampa Energía selected BNY Mellon as the depositary bank for its listed ADR program. Each ADR represents 25 common shares that trade on the Buenos Aires Stock Exchange. The common shares make up more than 10% of the Merval Index, and Pampa Energía is one of the most heavily traded issues in the Argentine market. About 77% of the company’s outstanding stock is free floating.
The company converted its Regulatory S global depositary receipts into ADRs. The GDRs will be delisted from the Luxembourg Stock Exchange.
Pampa Energía’s electricity-distribution business, Edenor, has more than 2.5 million customers. The company earned $51 million in the six months ended June 30, an increase of 239% from the first half of 2008.
Pampa Energía is not planning to make any acquisitions in the US, but company officials say it is important to be listed in New York and that the new ADR program is designed to increase liquidity and trading of its shares.