Light

Investor Relations

ADR's

On November 17, 2008, the Brazilian Securities and Exchange Commission (CVM) and the United States Securities and Exchange Commission (SEC) approved a Sponsored Level 1 American Depositary Receipt Program to be implemented by Light S.A.

American Depositary Receipts (ADRs) are negotiable securities issued by companies not based in the Unites States representing a certain number of the company’s common shares, which are priced and traded in U.S. dollars in the American over-the-counter (OTC) market. Dividends on these instruments are also paid in U.S. dollars. ADRs are designed to facilitate the acquisition, retention and sale of non-U.S. shares by American investors, as well as to provide the companies in question with a financing vehicle.

For this purpose, Banco Bradesco S.A. is the custodian of Light’s common shares in Brazil, while Citibank N.A. is the depository institution in the United States, responsible for issuing the respective depositary shares. One ADR is equivalent to one Light S.A. common share.

Current ADR prices and financial information are available at www.otcmarkets.com or www.otcmarkets.com/stock/LGSXY/quote.

Market Over-the-Counter (OTC)
Code LGSXY
Ratio (ADR:COM): 1 ADR:1 COM
Currency USD
Program Level 1
Depository Institution Citibank N.A.
Custodian Institution Banco Bradesco S.A.
Security Type Common Shares

Contact for information on ADRs

Citibank Shareholder Services
Address - P.O. Box 43077
Providence RI 02940-3077
Phone - 1-877-248-4237
The phone number outside the U.S. is 781-575-4555
Email:  citibank@shareholders-online.com

FAQ

What is an American Depositary Receipt (ADR)?

An ADR is a negotiable U.S. security representing shares of a non-American publicly-held company. ADRs are priced and traded in U.S. dollars on U.S. stock exchanges and any eventual dividends are also paid in U.S. dollars. ADRs are designed to facilitate the acquisition, retention and sale of non-U.S. shares by American investors, as well as to provide the companies in question with a financing vehicle.

What are the benefits of ADRs for American investors?

Such investors may prefer to acquire ADRs rather than common shares in the issuer’s local market since the ADRs are traded, cleared, and settled in accordance with U.S. market conventions. One of the biggest advantages of ADRs is that they facilitate the diversification of investments in foreign securities. They also allow easy comparisons with shares of similar companies as well as access to prices and trading information, when listed. ADR holders can also take advantage of prompt dividend payments and corporate share reception.

Are ADRs subject to Financial Operations Tax (IOF)?

No. On December 24, 2013, the federal government removed the 1.5% IOF rate in force since 2009.

What type of companies issue ADRs?

ADR issuers are normally large multinational companies, although any publicly-held non-American company seeking to raise capital in the United States or expand its investor base can issue ADRs.

Is it easy to obtain information and updates on ADR issuers?

This information is easily accessible on Light’s website. Investors can also register to receive annual reports and notices in English.

Where are  Light’s ADRs traded?

Light’s ADRs are traded on the U.S. over-the-counter (OTC) market.

Who is Light’s ADR depositary bank?

Citibank N.A. The depository institution plays a key role in the issue and cancellation of ADRs. It also maintains a register of ADR holders and distributes dividends in U.S. dollars.

What is the ratio between Light’s ADRs and its common shares?

Each Light ADR represents one Light common share.

What is the difference between ADR holders and beneficiaries?

ADR holders are those whose names are officially registered with the depositary institution, while ADR beneficiaries are those whose securities are recorded in the name of a third party, such as a broker, bank or agent.

How are ADR dividends distributed and taxed?

Dividends are distributed in U.S. dollars and, in general, taxed as per U.S. share dividends. However, the government of the issuer’s country may withhold tax at source. Depending on the case, foreign withholding taxes may be used as credits to offset U.S. taxes or constitute an opportunity for tax refunds.

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