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TORM A/S Message Board

  • jbusse0 jbusse0 May 10, 2013 10:15 AM Flag

    ADR Math

    On Wednesday, TORM closed at 1.23 DKK on the Copenhagen exchange. The ADR ratio is 10 Copenhagen shares for every 1 US share, and the exchange rate is currently 5.74 DKK per USD. The implied Copenhagen price at a $5.10 US price is $5.10/10*5.74=2.93 DKK. So, to justify the US listing price of $5.10, the Copenhagen listing will need to rise 2.93/1.23-1=138% when the Copenhagen exchange opens on Monday (it has been closed since Wednesday).

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