Citibank registers Mizrahi Tefahot shares for trading in the US

Citibank has filed a document with the SEC to register up to 50 million ADR certificates on Mizrahi Tefahot shares, in an independent initiative by the American bank. The registration allows US investors to trade the Israeli bank's stock in dollars, without needing an account on the Tel Aviv Stock Exchange. The move comes three months after the Bank of Israel opened the door to reporting under US accounting rules.

Citibank has filed a document with the US Securities and Exchange Commission (SEC) to register ADR certificates on Mizrahi Tefahot bank shares, as reported by Globes. This means US investors will be able to buy the Israeli bank's stock in American trading, in dollars and during US trading hours, without opening an account that allows trading on the Tel Aviv Stock Exchange. According to the document, filed last Thursday on Form F-6, Citibank registers up to 50 million ADR certificates, each representing one-fifth of an ordinary Mizrahi Tefahot share. The registration takes effect immediately. The move was initiated independently by Citibank as the depositary bank, and does not require approval from the Israeli bank. Mizrahi Tefahot did not initiate the move but did not oppose it either. In the US market, such a structure is known as an unsponsored ADR. The registration comes about three months after Globes revealed that the Supervisor of Banks circulated a draft circular allowing banks to publish reports under US accounting rules, a step that may promote full listing on Wall Street. Mizrahi Tefahot, traded at a value of about NIS 62 billion, is the second bank whose certificates will be available to US investors.