On Tuesday, it was reported that Samsung Electronics was in the early stages of planning to list on the US Stock Market. The company quickly came out and denied that report. Stating that “Samsung Electronics is not reviewing the possibility of issuing American Depository Receipts.”
Bloomberg first reported that Samsung Electronics had early discussions with banks, but had not yet made a decision about whether to proceed. The publication also reported that the discussions might not result in a listing.
Samsung had previously reviewed the possibility of an ADR offering but ultimately decided against it. However, SK Hynix’s recent US listing has given Samsung a reason to revisit this topic. SK Hynix listed last week on the NASDAQ with its ADRs at $149, raising around $26.5 billion for the company.
The current DRAM situation has companies thinking about raising more capital
Samsung, along with SK Hynix and Micron, owns about 90% of the global DRAM market. Obviously, with the current DRAM shortage, all three are making money hand over fist. In fact, Samsung made more profit last quarter than the last 40 years combined, which is really telling about the current DRAM situation. This would make now the perfect time to jump into the US stock market and raise some capital, as SK Hynix has done. It is now the largest-ever US listing by a foreign company, topping Alibaba in 2014. The only stock that raised more was SpaceX.
The DRAM shortage is expected to last for a few more years, as AI companies continue to pick up all of the DRAM they can for different data centers around the world. This is raising prices on quite literally everything you buy, from smartphones to speakers to laptops and everything in between. Unfortunately, prices are unlikely to come down anytime soon.
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