Notable Moments

February 17, 2020

44 years ago, on February 17, Kyocera made history by issuing its first American Depositary Receipt (ADR). What hopes and ambitions did this stride toward being recognized in the United States encompass? In 1976, Kyocera was fast-tracking the expansion of its business into the United States. Three years after Inamori declared the initiation of the "First Year of Multinationalization" in the company's management policies, on February 17 of that year, Kyocera executed the issuance of ADRs, setting the stage for their listing on the New York Stock Exchange in 1980. While other Japanese companies followed Sony's initial issuance of ADRs in 1961, there was a long period in which ADRs hadn't been issued due to the stringent evaluation criteria and legal restrictions of that time. Amidst this, Kyocera's issuance in 1976, the first in 13 years since 1963, garnered significant attention.

Behind this move was Inamori's vision of transitioning Kyocera from a Japanese company in the United States to a multinational corporation rooted in the United States. Feeling the tangible growth of the company in gaining the trust of customers, generating significant profits, and taking root in the local area, they decided to go public on the New York Stock Exchange.

"Thanks to this, our American subsidiary now employs 600 people, and our production value last year was about $20 million, with post-tax profits exceeding $1 million. Given this success, we plan to more actively expand our American operations." (From an external lecture in March 1976)

As his words implied, the approximately $17.2 million raised from the issuance of ADRs was all invested in the local subsidiary to further expand business activities in the United States, including the expansion of new factories and the establishment and acquisition of local companies. As a result, Kyocera would go on to further develop its business in the United States.

Photo: Inamori signing the ADR contract (1976)