STOCKS | Samsung Electronics Explores Potential U.S. ADR Listing, Report Says

Samsung Electronics was reported to be in the early stages of exploring a potential issuance of American depositary receipts (ADRs) in the United States. According to Jin10, foreign media cited people familiar with the matter as saying the company has held preliminary discussions with multiple banks but has not decided whether to proceed. The people said Samsung will closely watch the performance of volatile memory-chip stocks during its decision-making process. If the company ultimately moves forward with a U.S. listing, its large business portfolio and recurring labor-management disputes could complicate the design of the deal structure. The people added that Samsung had previously assessed the possibility of issuing ADRs but ultimately chose to abandon the plan. They said SK Hynix’s recent successful U.S. listing has provided fresh momentum for Samsung to revisit the option. The report said Samsung’s shares have risen about 120% so far this year, pushing its market capitalization above $1 trillion. It added that the sharp rise in the stock price has reflected higher market expectations for profit growth. Samsung’s preliminary results released last week were better than market expectations, but the stock still fell sharply, highlighting that meeting investor expectations has become increasingly difficult. The report also said expectations for more new capacity coming to market have added pressure on chip stocks.