Analyst: SK Hynix ADR May Experience Valuation Premium in the Short Term

BlockBeats News, July 13th, Periscope Analytics analyst Brian Freitas stated in a report that SK Hynix's newly listed American Depositary Receipts (ADR) may experience a valuation premium in the short term.

Freitas expects that the valuation premium on these ADRs in the very short term will be between 30% and 35%, and then narrow as a result of limited passive buying of these U.S. securities.

SK Hynix raised $26.5 billion in its U.S. listing and had a strong debut on Nasdaq last Friday, with its ADR closing up nearly 13%. In early Seoul trading today, the stock fell 10%.