SK Hynix is planning to list in the U.S. in the form of ADRs to expand its memory chip capacity through fundraising

BlockBeats News, March 23rd. According to the South Korean Economic Daily, SK Hynix is ​​pushing forward with a plan to list on the US stock market in the form of American Depositary Receipts (ADR) by issuing new shares. As the company completed the cancellation of treasury stocks (treasury shares) last month and currently has no available treasury stocks, it has chosen to issue new shares. SK Hynix plans to use the proceeds from this financing to expand the production capacity of cutting-edge storage chips such as High Bandwidth Memory (HBM) and further strengthen its leading position in the global artificial intelligence (AI) semiconductor market.

SK Hynix has essentially decided to issue new shares for an ADR listing, with the scale expected to be approximately 2.4% of the total shares, similar to the proportion of the previously canceled treasury stocks. The company had originally considered using its held treasury stocks (about 2.4%) to pursue an ADR listing, but due to market concerns that it might be seen as an attempt to circumvent the obligation to cancel treasury stocks, the company promptly canceled 2.1% (about 12.24 trillion Korean won) of the treasury stocks on the 9th of last month.

The market expects that SK Hynix could raise the equivalent of about 10 trillion to 15 trillion Korean won in USD funds through this new share issuance. This funding will be mainly used for AI infrastructure investments, including semiconductor cluster development (with a total scale of about 600 trillion Korean won). Industry insiders state that the company is still balancing shareholder reactions and market sentiment regarding the scale of the new share issuance, and do not rule out the possibility of further expanding the financing scale in the future.