TLDR
- SK Hynix is targeting a $149 price for its Nasdaq ADR.
- The US listing could raise about $26.5B.
- SK Hynix’s ADRs are set to trade under SKHYV before SKHY.
- The offering was reportedly more than seven times oversubscribed.
- Proceeds will fund AI chip, HBM and semiconductor expansion projects.
SK Hynix is preparing one of the largest foreign company debuts in U.S. market history as demand for AI memory chips keeps investor attention on South Korea’s semiconductor sector.
The company is targeting a price of $149 per American depositary receipt for its U.S. listing, Bloomberg reported. At that level, the offering could raise about $26.5 billion and surpass Alibaba’s $25 billion debut as the largest first-time U.S. share sale by a foreign company.
Each ADR represents one-tenth of a common SK Hynix share, according to its filing with the U.S. Securities and Exchange Commission. The planned price is about 3.1% above the company’s Thursday closing price in Seoul.
SK Hynix Nasdaq Listing Draws Heavy Demand
The ADRs are expected to begin when-issued trading Friday on the Nasdaq Global Select Market under the symbol SKHYV. Regular trading is scheduled to begin July 13 under the permanent ticker SKHY.
The sale includes 177.9 million ADRs, representing 17.79 million common shares. Demand for the offering was more than seven times oversubscribed, with interest from global long-only funds, technology funds, sovereign wealth funds, and Asia-focused investors.
Baillie Gifford, Coatue Management, and Situational Awareness Partners have indicated interest in as much as $7 billion worth of ADRs. The offering is being led by Bank of America, Citigroup, Goldman Sachs, and JPMorgan, with several other banks also involved.
Final terms may still change because discussions are ongoing. A spokesperson for SK Hynix did not immediately comment on the latest pricing details.
AI Memory Boom Supports US Listing
SK Hynix is one of the leading suppliers of high-bandwidth memory chips, which are used in advanced AI processors. Demand for HBM has increased as data centers expand capacity for AI training and inference workloads.
The company’s U.S. listing comes after a sharp AI-driven rally in its Seoul-listed shares. SK Hynix stock remains more than triple its level at the start of the year, although it closed Thursday about 25% below its late-June record.
Memory chip stocks have also seen wider volatility. Investors have been reassessing how quickly AI infrastructure spending will convert into earnings for chipmakers and suppliers.
The listing gives U.S. investors a direct route to trade SK Hynix through Nasdaq. It also adds another major AI-linked name to U.S. markets during a period of strong demand for semiconductor exposure.
Proceeds Target Chip Expansion
SK Hynix plans to use the proceeds to support major semiconductor expansion projects. The capital will help fund the Yongin Semiconductor Cluster, a large manufacturing project in South Korea.
The company also plans to invest in advanced packaging facilities, including the Cheongju P&T7 site. Advanced packaging is important for high-performance AI chips because it helps connect memory and processors more efficiently.
Part of the funding is expected to support procurement of ASML extreme ultraviolet lithography tools. These machines are used to manufacture next-generation chips at smaller process nodes.
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