SK Hynix $28 Billion US Listing Draws 7 Times Demand Ahead of 177.9 Million ADR Sale
Updated
Updated · Bloomberg · Jul 9
SK Hynix $28 Billion US Listing Draws 7 Times Demand Ahead of 177.9 Million ADR Sale
3 articles · Updated · Bloomberg · Jul 9
Summary
SK Hynix’s US share sale is now more than seven times oversubscribed as the South Korean memory-chip maker heads into Thursday pricing.
The offering covers 177.9 million American depositary receipts and has attracted institutional orders from global long-only funds, tech-focused investors, sovereign wealth funds and Asia-focused global funds.
That marks a step up from reports earlier this week that the roughly $28 billion listing was only multiple times oversubscribed, signaling demand strengthened as pricing approached.
The strong bookbuild comes despite recent semiconductor-market volatility, with the Philadelphia Semiconductor Index having fallen 15% in about 10 days before a Nasdaq 100 rebound.
Will a US listing finally close SK Hynix's valuation gap with its American rival Micron?
Can the fragile Korea-Taiwan-Japan supply chain withstand geopolitical shocks to fuel the AI boom?
SK Hynix’s Landmark US IPO: $1 Trillion Valuation, AI Memory Boom, and Global Market Impact
Overview
SK Hynix has made a landmark move by listing its American Depositary Receipts (ADRs) on the Nasdaq, strategically timing its debut as the window to raise significant capital narrows. This listing, expected to be the second-largest share flotation ever, follows a year of remarkable growth, with SK Hynix’s shares surging over 280% and its market capitalization surpassing $1 trillion. The company aims to close the valuation gap with global tech peers, raise substantial capital, and leverage its strong position in the booming AI and data center industries, driven by intense investor interest in High Bandwidth Memory (HBM) chips.