Samsung explores US ADR listing after SK Hynix’s record Nasdaq debut: report

Samsung Electronics is exploring the possibility of listing American Depositary Receipts (ADRs) in the United States, Bloomberg reported on Tuesday.

According to the report, the South Korean technology giant has begun preliminary discussions with investment banks about a potential ADR offering, although the talks remain at an early stage and may not ultimately lead to a listing.

Samsung has examined the possibility of an ADR offering in the past but chose not to proceed.

However, the record-breaking US listing of rival SK Hynix appears to have prompted the company to reconsider its options.

Discussions with banks remain preliminary, and the company has not yet decided whether it will proceed with the listing.

However, if it materialises, the move could significantly broaden its investor base as competition intensifies in the artificial intelligence semiconductor market.

SK Hynix's listing changes the landscape

The renewed interest comes just days after SK Hynix completed the largest-ever US listing by a foreign company.

The Nvidia memory chip supplier raised about $26.5 billion after pricing its American Depositary Receipts at $149 apiece, with demand reportedly exceeding the available shares several times over.

The successful debut has strengthened confidence that US investors remain willing to back companies positioned at the centre of the AI infrastructure boom.

Nasdaq President Nelson Griggs recently said SK Hynix's listing has already encouraged other international companies to evaluate US listings.

Data from LSEG also showed Asian technology equity fundraising through July 10 had tripled from a year earlier to a record $84 billion.

That backdrop has added momentum to discussions around Samsung's own potential listing.

Why do analysts favour an ADR?

Analysts argue that an ADR listing would do more than simply raise capital.

It could improve Samsung's visibility among US institutional investors, broaden its shareholder base, and potentially pave the way for inclusion in additional global exchange-traded funds and benchmark indices.

Last month, The Korea Times cited several analysts who suggested Samsung could become the next major Asian semiconductor company to pursue an ADR listing as the industry enters an increasingly capital-intensive AI investment cycle.

"Given the company's current undervaluation and favorable market conditions, the ADR scenario cannot be ruled out," said Kim Dong-won, head of research at KB Securities.

"It is viewed as a strong capital policy option to improve access for global investors, and related discussions are expected to gain momentum."

The experience of Taiwan Semiconductor Manufacturing Co. is often cited as a successful example.

According to Mirae Asset Securities analyst Yoon Jae-hong, roughly 9,994 global funds hold TSMC through its ordinary shares.

In addition, around 4,500 global funds and ETFs own only its ADRs, demonstrating how a US listing can significantly expand an international investor base.

AI investment cycle remains supportive

Samsung has its own strong AI growth story.

Earlier this month, the company projected a 19-fold increase in second-quarter operating profit to 89.4 trillion won ($58.44 billion), exceeding market expectations and marking what would be its third consecutive record quarterly profit.

Despite the earnings beat, Samsung's shares fell as much as 10% as investors questioned whether the current pace of AI-related spending could be sustained.

Many analysts, however, remain optimistic about the broader investment cycle.

"The current technology fundraising cycle still has considerable runway. We believe the structural drivers behind AI investment will continue to support healthy capital markets activity over the next two to three years," said James Wang, head of Asia ex-Japan equity capital markets at Goldman Sachs.

Pressure to access US capital markets

Some market observers believe Samsung's strong balance sheet has allowed it to delay tapping overseas capital markets, but that advantage may not last indefinitely.

Park Sang-hyun, an analyst at Clepsydra Capital, said Samsung's financial position gives it greater flexibility than SK Hynix, but warned that relying solely on existing cash resources could eventually become a disadvantage as AI-related investments accelerate.

Its current capital expenditure plans, he argued, may not be sufficient for the scale of spending required during the AI cycle.

"Samsung cannot keep ignoring US capital markets and still stay competitive. We are clearly seeing a similar shift in tone inside Samsung as what already played out at SK," Park wrote in a note on Smartkarma.

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