Key facts
- Samsung Electronics denied a report that it was exploring a potential U.S. offering of American Depositary Receipts (ADRs).
- A company spokesperson stated Samsung is not reviewing the possibility of issuing ADRs.
- Analysts at KB Securities had previously suggested a US ADR listing could provide a fresh re-rating for Samsung.
- SK hynix is proceeding with its own Nasdaq ADR listing, with shares trading to begin July 10.
- SK hynix's ADR plans have boosted its shares, which have gained approximately 340 percent year-to-date.
Samsung Electronics Co. has denied a Bloomberg News report that it was in the early stages of exploring a potential offering of American Depositary Receipts (ADRs). A spokesperson for the company stated that Samsung is not reviewing the possibility of issuing ADRs.
Analysts at KB Securities had previously suggested that a US ADR listing could provide a fresh re-rating for Samsung Electronics by broadening its access to global investors. The firm had raised its target price for Samsung Electronics to 550,000 won ($355) from 530,000 won, citing the ADR possibility, enhanced shareholder returns, and improving foundry earnings.
This potential move was discussed in the context of SK hynix's announcement of its board approval for issuing ADRs, scheduled to begin trading on the Nasdaq on July 10. SK hynix plans to issue up to 17.79 million new common shares, representing about 2.5 percent of its outstanding shares. The news of SK hynix's ADR plans had boosted its shares, which surged more than 10 percent in recent trading, briefly allowing SK hynix to overtake Samsung Electronics as South Korea's most valuable listed company by market capitalization. KB Securities noted that SK hynix shares have gained approximately 340 percent year-to-date, compared to Samsung Electronics' roughly 200 percent gain in the same period.