The Eck Effect, page-21

ADRs are less complex than the (not my) graphic suggests. Obvious beneficiaries are the fee receivers in the middle of the transactions. But the real (potential) beneficiaries are the Australian companies and thus their shareholders.

ADR listing allows access to much larger US capital markets, which takes the pressure off local capital raising sources. They also result in much wider and specialised US analyst coverage. A company like Cellmid would not be trading at its current market cap if subjected to that level of analyst coverage.

With only a low proportion of individual investors, US stock prices are largely determined by instos on the advice of analysts. Prices therefore are nearer to fundamental valuations, which then would reflect back on the home market. CDY would trade much closer to the Blue Ocean valuation prices if its ADRs were listed there, and be far less vulnerable to the emotional decisions of retailers needing to worry about losing their own money.