Asian Corporate ADR Fundraising Hits Six-Year High of $28 Billion; Citi Says Pipeline Remains Robust
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Asian companies have raised about $28 billion via ADRs this year, the most since 2020; Citi says the deal pipeline remains deep, driven by a yawning valuation gap and the AI rally pulling more Asian tech names toward New York.
Where did the $28 billion come from?
The vast majority traces to one deal: SK hynix (SKHY.US) raised $26.5 billion in a single ADR listing, accounting for over 90% of the year's total.
Japan's PayPay Corp. (PAYP.US) contributed roughly $1 billion via its IPO — the second-largest source.
This means → the "record" leans heavily on one mega-deal; whether the trend holds depends on follow-on issuance.
Why are Asian chip companies listing in the US?
The core driver is a valuation gap: Philadelphia Semiconductor Index constituents trade at an average P/E of about 22× — more than double their Asian peers.
In plain terms = the same chip company, listed in New York instead of Asia, can command roughly twice the market price.
SK hynix's offering has already narrowed the gap with rival Micron; TSMC's earlier US listing pulled in heavy foreign inflows and set a template.
The AI-fueled rally in chip stocks has created a favorable backdrop for new issuance.
Who is next in line?
Kioxia Holdings, Japan's memory-chip maker, has said it plans to launch an ADR next year.
Samsung Electronics is reportedly in the early stages of evaluating a US listing, spurred by its domestic rival's success.
This means → if both Kioxia and Samsung follow through, all three major Asian memory-chip makers will trade on a US exchange — giving investors a single venue to compare them head to head.
What could go wrong?
High volatility in chip stocks is the biggest wildcard — just last month, concerns over hyperscalers' massive AI spending triggered a sell-off across global chipmakers.
Whether Kioxia and Samsung can proceed smoothly will hinge on market sentiment toward AI capital-expenditure outlooks at the time.
In plain terms = the ADR window is open, but chip-stock sentiment can tighten fast on a single round of AI skepticism; timing matters more than intent.
Content is for reference only, not financial advice.