Analyst: SK Hynix ADR listing or accelerating Samsung Electronics’ timeline for listing in the US

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Deep Tide TechFlow message. On July 17, Douglas Kim, an analyst at Douglas Research Advisory, said that after SK hynix successfully listed in the U.S. via American Depositary Receipts (ADRs), Samsung Electronics’ drive to advance a similar listing plan has become more urgent. Complex accounting treatment issues may have been one of the reasons Samsung Electronics has delayed moving forward with an ADR listing. However, SK hynix’s ability to complete the ADR issuance smoothly and without major accounting problems should help ease related concerns. Kim said, “If Samsung Electronics relies only on Korea’s domestic listing platform and its own cash reserves for financing, it may be at a disadvantage in competition for capital expenditures.” He added that currently SK hynix’s ADRs trade at a premium versus its domestic Korean shares, and if this premium persists, Samsung Electronics’ motivation to list in the U.S. will be further strengthened. (Jin Ten)
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