Samsung Electronics is reportedly re-evaluating the possibility of listing American Depositary Receipts (ADRs) on the U.S. stock market, following the successful debut of SK Hynix.
On July 14, Bloomberg News cited sources familiar with the matter, stating that Samsung has recently engaged in preliminary discussions with banks regarding the issuance of ADRs. However, the sources noted that the company has not yet made a decision on whether to proceed with the listing, nor has it selected underwriters or established a specific transaction structure. Samsung is expected to assess the situation after observing the volatile trends in memory semiconductor stocks.
ADRs are securities issued by U.S. depositary institutions that represent shares of foreign companies, allowing investors to trade these shares on U.S. exchanges and enhancing accessibility for investors.
Samsung has considered issuing ADRs in the past but has not moved forward with such plans. However, sources indicated that the recent successful U.S. listing by competitor SK Hynix has prompted Samsung to revisit this possibility.
Last week, SK Hynix raised $26.5 billion (approximately 40 trillion won) through its U.S. listing, marking the largest amount ever raised by a foreign company in the U.S. market. This event has been seen as a confirmation of strong interest from U.S. investors in key companies involved in expanding artificial intelligence (AI) infrastructure.
Should Samsung pursue a U.S. listing, the complexity of its business structure, which encompasses not only semiconductors but also smartphones and home appliances, could pose challenges in transaction design. Additionally, ongoing labor disputes may also impact investor perceptions and the structuring of the listing, according to sources.
* This article has been translated by AI.
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