SK Hynix ADR Takes Off

Editor's NoteSK hynix is pursuing a listing on the New York Stock Exchange with a target of completing it within the year, drawing both anticipation and concern in the market. This article examines the effects and limitations of ADR listings, referencing the case of Taiwanese semiconductor company TSMC, which entered the New York Stock Exchange as the first company to issue American Depositary Receipts (ADRs) over 30 years ago. There are calls from Wall Street that Samsung Electronics, like SK hynix, should also list its American Depositary Receipts (ADRs). They argue that listing on the U.S. exchange would allow Samsung Electronics to escape the so-called "Korea Discount"?the undervaluation of Korean stocks?and benefit from a valuation reappraisal and improved liquidity. David Samra, managing director of U.S. asset management company Artisan Partners (pictured), said in a recent written interview with The Asia Business Daily, "Re-listing ADRs based on existing shares can deliver meani

Editor's NoteAs SK hynix pursues a listing on the New York Stock Exchange with a target set for this year, both expectations and concerns are circulating in the market. By examining the case of TSMC, a Taiwanese semiconductor company that became the first to issue American Depositary Receipts (ADRs) and list on the NYSE more than 30 years ago, we explore the effects and limitations of ADR listings. "SK hynix could also benefit from a (U.S. listing) premium similar to TSMC, given its significance in memory and artificial intelligence (AI)-related technologies," said Professor Chen Yaotung of Ming Chuan University in Taiwan (pictured) in a recent written interview with The Asia Business Daily. When asked whether SK hynix could enjoy a share price premium similar to TSMC if it is listed on the U.S. stock market, he responded accordingly. However, he added, "The magnitude and persistence of the premium will depend on investor perception, liquidity conditions, and the level of segmentation

Editor's NoteWith SK hynix aiming to list on the New York Stock Exchange within the year, there is a mix of anticipation and concern in the market. By looking at the case of TSMC, the Taiwanese semiconductor company that became the first to issue American Depositary Receipts (ADR) and list on the New York Stock Exchange over 30 years ago, we examine the effects and limitations of ADR listings. There are also investor concerns surrounding SK hynix's plans for an American Depositary Receipt (ADR) listing in the United States. While there is optimism that it could resolve the "Korea discount" (a phenomenon where Korean stocks are undervalued) and attract global capital, there are fears about the dilution of existing shareholders' value due to the issuance of new shares. In an interview with The Asia Business Daily, Professor Chen Yaotung of Ming Chuan University in Taiwan stated that, in principle, concerns about shareholder value dilution through new share issuance for ADRs are valid. Ho