Samsung denies exploring US stock listing after Bloomberg report

Samsung Electronics moved quickly on Tuesday to deny a Bloomberg report that it was in the early stages of exploring a potential American Depositary Receipt listing in the United States, issuing a flat denial that dashed hopes among US investors seeking easier access to shares in the South Korean tech giant.

The Denial

"Samsung Electronics is not reviewing the possibility of issuing American Depositary Receipts," a Samsung spokesperson said in a statement, according to Reuters. The denial came within hours of a Bloomberg report citing unnamed sources that said the company had held preliminary discussions with banks about a potential ADR offering.bloomberg+1

Bloomberg had reported that Samsung would monitor volatile memory chip stocks as part of any decision-making process, and that the company's sprawling business portfolio and recurring labor disputes could pose challenges in structuring a deal. The report noted that the discussions might not result in a listing.bloomberg

Context: SK Hynix's Successful US Debut

The Bloomberg report emerged days after rival SK Hynix completed a blockbuster US ADR listing, raising $26.5 billion by issuing 177.9 million ADRs priced at $149 each. That offering has renewed interest in whether other major South Korean companies might follow suit and seek access to US capital markets.finance.yahoo

Samsung's shares currently trade on the Korea Exchange, with Global Depositary Receipts listed on the London Stock Exchange. US investors can only access Samsung through over-the-counter markets under the ticker SSNLF, which offers limited liquidity compared to a formal exchange listing.samsung

Not the First Time

This is not the first time Samsung has explored and ultimately rejected a US listing. The company had previously reviewed the possibility of an ADR offering but chose not to proceed. Samsung's official stance appears unchanged: despite SK Hynix's success and growing investor demand, the world's largest memory chipmaker is not ready to take the ADR plunge.reddit