The Samsung Electronics, is evaluating the hypothesis of a listing on Wall Street, with the idea of a potential offering of Adr (American Depositary Receipts), following exactly in the footsteps of its colleague in the South Korean index Kospi, Sk Hynix. He reports it Bloomberg citing sources familiar with the matter
The South Korean chipmaker is located in the preliminary phase in which is contacting the banks, but has not yet taken a final decision on the matter and, in the decision-making process, will have to monitor thevolatile trend of stocks in the memory chip sector. Furthermore, if the company decides to list in the United States, it will not be easy to structure the operation considering the its broad portfolio of activities and the appellants labor disputes, some sources say.
The process is still in its early stages and may not lead to an IPO, the sources added. Already in the past, the company had evaluated the possibility of an offer from Adr but then decided not to proceed.
However the success of the SK Hynix IPO in the United States has given Samsung new motivation to reconsider the idea. Sk Hynix, which competes with Samsung in the memory chip market, raised $26,5 billion last week, marking the largest-ever U.S. IPO for a foreign company. That move was an indication of the strong investor demand for companies at the heart of global development'artificial intelligence, overcoming fears that valuations along the AI supply chain are excessive.
Le Samsung shares, which they saw today a sudden up and down and then starting to close with a rise of 3,34% they gained about 120% this year, bringing the capitalization company's market value is over $1.000 trillion. For comparison, Sk Hynix has seen a 194% increase, with a market capitalization of around $900 billion.
Il South Korean stock market It has been driven by exponential growth in the chip industry, particularly semiconductors, fueled by artificial intelligence. However, extreme volatility and heavy dependence on just two companies could indicate that this is a bubble ready to explode. The stock rally has already discounted high earnings growth expectations. Last week, the Samsung's preliminary results they exceeded the estimates, yet the stocks have collapsed abruptly, demonstrating how difficult it has become to satisfy investors.
At the end of May the members of the trade union Samsung Electronics voted in favor of a pay deal that will give semiconductor workers an average bonus of about $340.000, thus avoiding a strike which threatened to disrupt the world's chip supply.
Samsung and SK Hynex ready to launch larger chip production, with government help
Another factor weighing on the stocks of semiconductor manufacturers is the prospect of a new plant coming into operation. greater production capacity, which should ease memory supply constraints. Last month, Samsung Group and Sk Group they announced their intention to to build two chip manufacturing plants each, with a total investment of 800 trillion won (536 billion U.S. dollars), to rapidly expand production capacity and meet growing demand.
Both Sk Hynix and Samsung Electronics are also participating in a South Korean government plan to double the country's memory chip production capacity within five years. This includes an investment of 400 trillion won, equivalent to approximately $266 billion, in chip manufacturing plants in the southwest of the country. Also Sk Hynix he stressed that the proceeds proceeds from its listing on Wall Street last week will be used to speed up production of memory chips given the very strong demand that risks not being satisfied as early as next year.
