What is a CDI?
The ASX uses an electronic system called CHESS for the clearance and settlement of trades on the ASX. Pivotal is incorporated in the state of Delaware in the US, which does not recognise the CHESS system of holding securities.
Accordingly, to enable companies such as Pivotal to have their securities cleared and settled electronically through CHESS, depositary instruments called CDIs are issued. CDIs represent the beneficial interest in the underlying shares in a foreign company such as Pivotal and are traded in a manner similar to shares of Australian companies listed on the ASX.
Each CDI of Pivotal represents an interest in one share of common stock in Pivotal (Share) (a 1:1 ratio). The Shares underlying the CDIs rank equally with the Shares currently on issue in the Company. The main difference between holding CDIs and Shares is that CDI holders hold the beneficial ownership in the Shares instead of legal title.
How to Purchase Pivotal Systems Shares
Like all other ASX-listed companies, Pivotal’s CDIs are traded electronically and can only be bought and sold through an ASX participant broker. The ASX maintains a registry of ASX participant brokers which can be located here.
A number of brokers outside of Australia offer their domestic clients access to certain international markets, such as the ASX. Non-Australian residents should consult their financial adviser for more information on international share trading options.
Please see here for more information on buying and selling stocks on the ASX.
NO OFFER OR SOLICITATION REGARDING SECURITIES
Contents are provided for general information purposes only and do not constitute an offer to sell or a solicitation of an offer to buy any security of Pivotal Systems Corporation (“Pivotal”) or its affiliates in any jurisdiction. Pivotal does not intend to solicit and is not soliciting, any action with respect to any security or any other contractual relationship with Pivotal. Nothing in this website or the contents thereof, individually or taken in the aggregate, constitutes an offer of securities for sale or a solicitation of an offer to buy any security in the United States, Australia or in any other jurisdiction in which such an offer or solicitation is unlawful, or to US persons.
The contents of this section, information contained in these pages, any opinion expressed therein and other contents of this website are provided solely for general information purposes, and do not constitute a sale of, offer for sale of, or solicitation of an offer to buy any securities in any jurisdiction.
CDIs have not been and will not be, registered under the US Securities Act or the securities laws of any state or other jurisdiction in the United States and may not be offered or sold in the United States, or to or for the account of any US Person in the absence of registration or an exemption from registration under the US Securities Act and applicable state securities laws.