SK Hynix is poised for a $2.8 billion IPO in the US, with investor demand exceeding the offered amount by several times.
SK Hynix received an enthusiastic response from global funds for its $2.8 billion ADR offering, reflecting confidence in its memory chip business, which is driven by the AI trend.
On July 7, 2569 at 10.44:XNUMX p.m., Bloomberg News reported that SK Hynix, one of the world's leading memory chip manufacturers, is poised to make history with a planned US$28,000 billion initial public offering (IPO) via American Depositary Receipts (ADRs). The offering attracted overwhelming interest from investors, with subscriptions far exceeding the amount offered, ahead of the pricing decision on Thursday, according to sources close to the matter.
Sources indicate that most of the investment demand comes from global long-only funds and technology investors, while Monday's roadshow, attended by over 1,000 institutional investors, reflects strong interest in the deal.
SK Hynix began offering 177.9 million ADRs on Monday, valued at approximately $28,000 billion, based on Friday's closing price of its common shares on the South Korean stock exchange. If the offering is successful, it will become the largest listed company in a US stock exchange in history.
SK Hynix's ADR (Auction Receipt) is defined as one ADR unit equivalent to 0.1 ordinary share. This offering represents approximately 2.5% of the company's market capitalization, which is currently over $1 trillion, following a more than threefold increase in its share price this year, despite continued volatility in the global chip industry.
According to the schedule, the company will set the offering price on Thursday afternoon (New York time), before South Korean stock markets reopen for trading, and the ADRs are expected to begin trading on the Nasdaq Global Select Market on Friday.
Analysts also believe that restrictions on converting South Korean-listed shares into ADRs may make arbitrage between the two markets difficult, potentially leading to ADRs trading at a premium compared to the underlying share price.
The financial institutions acting as lead managers include Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase.
Furthermore, several major institutional investors, such as Baillie Gifford, Coatue Management, and Situational Awareness Partners, have expressed interest in acquiring ADRs totaling up to US$7,000 billion in this initial public offering. This reflects their confidence in SK Hynix's growth prospects, driven by the strong global demand for chips for artificial intelligence (AI) technology.
refer : bloomberg.com
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