Level III ADR commitment applies to:

Question

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Level III ADR commitment applies to the sale of a new equity issued in the United States. Level III ADR provides the highest level of support by offering a fully underwritten capital raising. It requires the underwriter to purchase any shares that are not sold to the public. This commitment is important for companies that are new to the market or for issues that are bigger in size. ADR issues of under $25,000 are generally not worth underwriting, and thus, do not fall under the Level III commitment. Listing existing shares on the NYSE does not require an ADR commitment, and foreign mutual funds issued by banks do not involve ADRs directly.

Level III ADR Commitment Applies To