SK hynix said in a filing on the 10th that nothing has been decided regarding listing its treasury shares on the U.S. stock market as American Depositary Receipts (ADR). An ADR is a certificate issued on U.S. exchanges by a U.S. depository institution that holds overseas corporations' shares, allowing them to be traded with the same effect as stock. There had been speculation that SK hynix would pursue listing about 2.4% of its treasury shares (17,407,800 shares) as ADRs.
Responding to an inquiry disclosure request the same day, SK hynix said, "We are reviewing various measures to enhance corporations value, including listing on the U.S. stock market using treasury shares," adding, "Nothing has been decided to date. We will re-disclose when specific details are finalized or within one month."
If ADRs are issued, U.S. investors can indirectly conduct transactions in the shares, effectively creating the impact of a U.S. listing. With analysis suggesting SK hynix is undervalued compared with U.S. competitor Micron, the company is expected to be able to have its corporations value reassessed in overseas markets through an ADR issuance.