Samsung officially denies US ADR plan but has initiated internal evaluation

Odaily Planet Daily News: Citrini analyst jukan posted on the X platform stating that Samsung Electronics has reportedly initiated an internal evaluation of a plan to issue American Depositary Receipts (ADRs) in the United States and is researching the operational procedures involved. Although Samsung Electronics has officially denied considering a US listing through ADR issuance, following instructions from senior management, working-level employees have begun evaluating potential costs, benefits, and necessary procedures.

Sources in the semiconductor industry stated that relevant departments at Samsung Electronics are studying whether a feasible US ADR issuance structure can be established. Teams such as finance and investor relations are identifying the respective tasks and processes required if a US listing proceeds. This evaluation is considered a preliminary feasibility study and does not indicate that Samsung Electronics has decided to list or determined the timing or scale of issuance.

Samsung Electronics employees were also reportedly requesting information on the preparation process and practical experience from SK Hynix, which recently issued ADRs and listed on the Nasdaq. Bloomberg reported on July 14 local time that Samsung Electronics had held preliminary discussions with investment banks regarding a potential US listing via ADRs, but has not made specific decisions regarding underwriters or the issuance structure, and a listing may ultimately not occur. Following the report, Samsung Electronics stated that the company has not considered listing on the US stock market through ADR issuance. On July 10, SK Hynix issued ADRs at $149 per share, raising approximately $26.5 billion (about 40 trillion Korean Won), making it the second-largest listing case in US stock market history, trailing only SpaceX's $85.7 billion raised through its IPO last month. It also represents the largest-ever US listing by a foreign company.