SK Hynix raises USD26.5b ahead of Nasdaq debut
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The news: South Korean chipmaker SK Hynix, the world’s second-largest producer of memory chips, has raised USD26.5 billion ($38.1 billion) through its American depositary share offering, with the US listing more than seven times oversubscribed, according to Bloomberg.
The context: SK Hynix’s American depositary shares are due to begin trading on the Nasdaq under the ticker “SKHY” on Friday (ET), with 10 American depositary receipts (ADR) representing one Seoul-listed common share. The company sold 177.9 million ADRs at USD149 each.
The offer is on track to become the third largest IPO in history, surpassing Alibaba’s debut.
Proceeds from the ADR sale will help fund expanding capital expenditure as demand for AI computing infrastructure continues to surge. SK Hynix and Samsung are also expected to ramp up investment in South Korea under a government-backed initiative worth USD880 billion.
According to Bloomberg calculations, the listing was priced at a premium of about 3% to Thursday’s (ET) closing price of SK Hynix’s ordinary shares in Korea.
The offering was led by Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase alongside nine other firms.
The source: Bloomberg
