SK Hynix's US Financing May Exceed Alibaba's, Setting the Record for the Largest ADR Financing at $29 billion

BlockBeats News, June 24th, South Korean storage chip giant SK Hynix plans to raise up to 45 trillion Korean won (approximately $29 billion) through an American Depositary Receipt (ADR) offering in New York, with the transaction set to commence in July. If successful, this fundraising will surpass Alibaba's $25 billion IPO in 2014, becoming one of the largest overseas equity financing projects in South Korean corporate history and approaching a global capital market record.

According to the plan, SK Hynix will first issue shares in South Korea, then deposit the related shares into a South Korean securities depository institution as the underlying securities for ADRs, with South Korean regulators expected to complete the review by July 3. The raised funds will be mainly used for the construction of the Yongin Semiconductor Cluster in South Korea, the Indiana factory in the United States, and the purchase of EUV (Extreme Ultraviolet Lithography) equipment to support AI-related advanced storage capacity expansion. Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America have been designated as the lead underwriters.

SK Hynix's confidence in this US fundraising comes from its strong position in the AI industry chain. As a global leader in High Bandwidth Memory (HBM), the company is a core supplier of NVIDIA's AI accelerator chips. Driven by AI demand, its stock price has already surged over 300% year-to-date. CEO Lee Seok-Hee expressed that the company aims to enhance its global influence through the US capital market and achieve a valuation level comparable to other AI hardware companies.