Samsung Could Follow SK Hynix With a US Stock Listing

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While Samsung is one of the world’s largest technology companies, buying its stock is not as simple for investors in the US. However, that could change in the future, as the industry speculates that the Korean firm may consider a US listing through American Depositary Receipts (ADRs). This comes after rival SK Hynix confirmed to list its ADRs on the Nasdaq next month.

For the uninitiated, an ADR is a US bank-issued certificate that denotes shares of a foreign company. It lets investors trade the shares in US dollars on American markets.

SK Hynix’s Nasdaq plans put Samsung in the spotlight

SK Hynix, Samsung’s arch-rival in the AI memory chip space, announced that it will list ADRs on the Nasdaq on July 10. The company will issue and deposit 17.79 million new shares, giving ADR at a 1:10 ratio of the underlying shares. Industry analysts believe SK Hynix could qualify for the Nasdaq-100 index by the end of this year. More importantly, there’s growing speculation that Samsung could follow the same path as SK Hynix.

Currently, Samsung is not listed on a major US exchange such as the Nasdaq or the New York Stock Exchange. The company’s shares trade mainly on South Korea’s Korea Exchange. As such, many US investors find it harder to buy the stock, though an over-the-counter (OTC) stock is available.

“Interest and inquiries regarding Samsung Electronics’ ADR listing at overseas investor meetings far exceeded expectations,” said Kim Dong-won, Head of Research at KB Securities. “There was a widespread view that if the ADR listing materializes, it will serve as a powerful catalyst for a rise in Samsung Electronics’ stock price.”

As of now, Samsung has not shared any word regarding the ADR listing. It’s just industry speculation. We’ll let you know if the Korean firm takes its shares to Nasdaq or another major US exchange.

Written by

Binay Konwar

Binay Konwar started his blogging journey in 2014 and has since written plenty of tech articles. At present, he is working as a News Writer at SammyGuru, covering everything about Samsung. He holds a Master's degree in Mathematics, but his real passion lies in tech and writing. In his free time, he enjoys playing chess and watching movies.

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