SK Hynix Completes ADR Offering in the U.S., Raising $26.5 Billion, Setting a New Record for Foreign IPOs in the U.S.

BlockBeats News, July 10th - South Korean semiconductor company SK Hynix completed an American Depositary Receipt (ADR) offering in the U.S., raising $26.5 billion, setting a record for the highest-ever foreign company IPO in the U.S. and becoming the third-largest listing in global securities history.

In this offering, SK Hynix issued a total of 177.9 million ADRs, priced at $149 per ADR, with each ADR equivalent to one-tenth of its common stock traded on the Korean stock exchange. The final offering price carried a premium of about 3% over the closing price in Korea. Under the trading arrangement, SK Hynix's ADRs will begin trading on Nasdaq Global Select Market on Friday with the temporary code "SKHYV," and are scheduled to transition to the permanent code "SKHY" for regular trading on July 13th.

This offering was led by Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase, with participation from 9 other companies. Market feedback indicates that the offering was oversubscribed more than 7 times, with total subscription intentions nearing $200 billion. Asset management firms such as Baillie Gifford, Coatue Management, and Situational Awareness Partners participated in the subscription. The top ten orders accounted for nearly half of the shares.

SK Hynix aims to narrow the valuation gap with U.S. peers such as Micron Technology by listing on the U.S. stock market and leveraging the premium from overseas capital to enhance its enterprise value. As a core supplier of Nvidia's High Bandwidth Memory (HBM), SK Hynix already holds a significant share in this field. Meanwhile, U.S. Commerce Secretary Howard Lutnick stated that he is in discussions with Samsung Electronics and SK Hynix, urging the two South Korean memory chip manufacturers to increase production capacity in the U.S. to strengthen the resilience of the U.S. domestic chip supply chain.