Posco (ADR ticker: PKX), the world's 5th largest steel manufacturer has made public its intention to list its shares on the Tokyo Stock Exchange (TSE) beginning November 22nd. This is an interesting move in which it plans to list its ADRs. As far as I know, this is the first time a company has listed its ADRs on the TSE. Bloomberg reported that Posco will sell 3.5 million shares per its filing to the Korea Stock Exchange.
This is a strategic financial move by Posco with potentially excellent benefits for shareholders, as it will list its shares directly against Japanese rivals, Nippon Steel Group and JFE Holdings. The upside for Posco shareholders lies in the fact that it trades at a much lower multiple than its competitors. Posco is currently trading at 4.1 times forecasted earnings, while Nippon Steel Group trades at 8.6 times and JFE trades at 6.8 times. (Source: Bloomberg) Analysts are anticipating its shares will rise relative to its rivals' multiples.
* Both Nippon Steel Group and JFE Holdings are components of the iShares Japan ETF (ticker: EWJ).