Food manufacturer Strauss Group will list its shares for trading in the United States. Strauss is one of Israel's three largest food companies and the world's sixth largest coffee manufacturer. Citi asked the U.S. Securities and Exchange Commission to allow it to register American Depository shares for Strauss.
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ADS is a vehicle that allows non-American companies to trade on American exchanges and in dollars. Strauss now trades on the Tel Aviv Stock Exchange. It is still not clear whether Strauss will trade on the Nasdaq or the New York Stock Exchange, but the Nasdaq is more likely due to an low level of daily trading.
Citi will publish Strauss' financial reports in English, but they will only be a translation of its Israeli reports and will meet IFRS standards, not American accounting standards.
Citi is behind the move, which is considered "unsolicited," as Citi thinks there is enough interest to justify the listing. But since it is unsolicited, Strauss is not required to meet American accounting standards or other SEC requirements such as publishing a prospectus.