Samjeong KPMG "To Succeed in US Listing, Companies Must Consider Listing Methods Individually"

Among domestic companies listed on overseas stock exchanges, half were found to be listed in the United States.

According to the report "Trends in the US IPO (Initial Public Offering) Market and Domestic Companies' Listings in the US" published by Samjong KPMG on the 15th, since POSCO Holdings became the first domestic company to be listed on the New York Stock Exchange (NYSE) in 1994, a total of 56 domestic companies have pursued listings on overseas stock exchanges up to last year. Among them, 25 companies (45%) were listed on the US market.

Trends of Overseas Market IPOs by Korean Companies. Provided by Samjong KPMG

Kang Sang-hyun, leader of the Samjong KPMG US IPO advisory team, said, "The US capital market is not only open to foreign companies but also advantageous in terms of additional fundraising and enhancing corporate value after listing, so the demand for US listings by domestic companies continues to increase." He added, "Especially given the US IPO market’s focus on future growth potential, it provides a more suitable environment for technology-based growth companies."

As of last year, foreign companies accounted for 25% of new listings on both the New York Stock Exchange (NYSE) and NASDAQ, significantly surpassing major markets such as the UK (4.7%), Hong Kong (6.9%), and Japan (0.2%). The price-to-book ratio (PBR) of the S&P 500 was 4.8 times, markedly higher than Korea (0.92 times) and Japan (1.41 times), indicating the US market’s superiority in terms of fundraising.

PBR Trends of the Representative Indices of Korea, the United States, and Japan. Provided by Samjong KPMG

The report pointed out that while the US capital market offers abundant opportunities, it also requires strict regulatory requirements and listing maintenance standards. Therefore, thorough preparation is necessary, including ▲transition to accounting standards ▲audits according to the Public Company Accounting Oversight Board (PCAOB) standards ▲structural design based on fundraising purpose and scale ▲tax issue management ▲and mid- to long-term business model establishment.

In fact, only 60% of the 25 domestic companies listed in the US maintain their listings, and recently, various routes such as ADR (American Depositary Receipt), direct listing, and SPAC (Special Purpose Acquisition Company) listings have been utilized. A strategic approach considering accounting and tax impacts tailored to the company’s situation is increasingly important.

Leader Kang Sang-hyun said, "Listing in the US is a strategic choice not only for short-term fundraising but also for strengthening global presence and enhancing corporate value." He added, "It is necessary to establish a comprehensive strategy considering the listing method, timing, and market according to each company’s business model and growth stage." He also stated, "Given the recent pro-business policy trends and moves to ease capital market regulations in the US, continuous monitoring and execution strategies must be prepared to actively respond to the changing market environment."

Meanwhile, the Samjong KPMG US IPO advisory team possesses integrated advisory capabilities for the entire US IPO process and provides all-in-one services covering accounting, tax, and financial advisory. Through collaboration with the KPMG global network in 143 countries, they support the establishment of customized strategies reflecting local US trends.

This content was produced with the assistance of AI translation services.