SK Hynix Debuts On Nasdaq After Raising $26.5 Billion In Largest Foreign Listing Ever
SK Hynix began trading on the Nasdaq Friday after completing the largest ever US share sale by a foreign company Finance reported that the South Korean memory chipmaker priced 177.9 million American depositary receipts at $149 each, raising about $26.5 billion and surpassing the $25 billion Alibaba raised in its 2014 US listing. Each ADR represents one tenth of a common share traded in Seoul, and trading opened Friday under the provisional ticker SKHYV, with the permanent ticker SKHY taking effect Monday.
Bloomberg reported that premarket price indications showed the ADRs trading around $175 each, about 17 percent above the offering price, as of late morning Friday in New York. Orders during the book building process reportedly covered seven times the number of ADRs on offer, with demand coming from global long only funds, technology focused funds, sovereign wealth funds and Asia focused investors.
AdvertisementSK Hynix said it plans to use the proceeds to expand manufacturing capacity in South Korea, including a new fabrication plant at its Yongin semiconductor cluster and an advanced packaging plant in Cheongju, along with purchases of extreme ultraviolet lithography equipment. The company holds a 56.4 percent share of the high bandwidth memory market used in AI processors, ahead of Samsung Electronics and Micron, and crossed a $1 trillion market capitalization for the first time in May as demand for HBM chips tightened supply across the industry.
Editor's take: A foreign company choosing to list in the US at a premium rather than a discount, with orders covering seven times the shares on offer, is the clearest signal yet that American investors are willing to pay up for direct exposure to the AI memory supply chain rather than route around it through Samsung or Micron alone.
US equity markets are open for a full session today; SK Hynix ADR prices above are intraday indications and can change materially through the close. Research AI and semiconductor stocks at Investorideas'sfree stock directory.
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