HeartWare International, Inc. (HeartWare International) said its request to list its common shares on the NASDAQ Global Market (NASDAQ) has been approved. Trading will start at 10.00am Eastern Standard Time on February 24, 2009. Following the listing on NASDAQ, HeartWare International will maintain dual listings, with common shares trading on NASDAQ under the symbol HTWR and Chess Depository Interests (CDIs) continuing to trade on the Australian Securities Exchange (ASX) under the symbol HIN.
As previously advised, security holders are able to convert between NASDAQ listed common shares and ASX listed CDIs on the basis that each common share can be converted into 35 CDIs, and vice versa. Security holders wishing to convert their holdings from one form of security to the other can do so by contacting the company’s share register (Computershare).
Given the ability for holders to exchange between HTWR and HIN, it is expected that the trading prices of the two forms of security will broadly track one another. That is, it is expected that the trading price of HTWR securities on NASDAQ should be approximately 35 times the trading price of HIN securities on ASX after allowing for the USD/AUD exchange rate.
US Market Makers
In order to establish a trading market in the United States following the NASDAQ listing, J.P. Morgan, Cannaccord Adams and Lazard Capital Management will serve as HeartWare’s initial market makers. Analyst coverage has already commenced, with Lazard Capital Management, Summer Street Research Partners and Pacific Growth Equities having initiated research in recent months.
Capital Structure
HeartWare currently has 8,866,702 shares of common stock on issue. The vast proportion of these are represented by 308,799,610 CDIs (being a ratio of one share of common stock to 35 CDIs). Following the listing on NASDAQ, it is expected that a number of investors, particularly those based in the US, will migrate their holdings from Australia to the US by exchanging their CDIs for common stock.
Approximately 80% of HeartWare’s shares are held by investors located in the United States. The Company’s four largest shareholders, Apple Tree Partners, Mr. Muneer Satter, Fidelity Investments and Deephaven Capital Management, together account for approximately 60% of HeartWare’s issued capital. The remaining 20% of US-owned stock is held by a relatively small number of primarily specialist healthcare funds.