SK Hynix plunges ahead of $29B Nasdaq debut amid AI fears

SK Hynix, South Korea's most valuable company, is pressing ahead with its planned Nasdaq ↗ 1.34% debut on July 10 even as a brutal semiconductor selloff has wiped billions from its market value in recent days.

A Landmark Listing Takes Shape

The memory chipmaker plans to raise up to 45.45 trillion won (approximately $29.4 billion) by issuing 17.79 million new shares as American depositary receipts under the ticker "SKHY," according to a regulatory filing disclosed on June 24. Ten ADRs will represent one common share. Bookbuilding is scheduled to begin July 6, with final pricing set for July 9.cnbc+1

The offering would rank among the largest listings globally. BofA Securities, Citigroup Global Markets, Goldman Sachs The Goldman Sachs Group, Inc. ↗ 0.74%, and JP Morgan Securities are managing the deal. SK Hynix has said proceeds will fund new chip factories in South Korea and the purchase of chipmaking equipment, including extreme ultraviolet lithography scanners made by ASML ↗ 0.67%.reuters+1

Semiconductor Selloff Hits Days Before Debut

The listing's timing has become fraught. On Wednesday, Bloomberg reported that Meta Platforms ↗ 0.53% is developing a cloud infrastructure business dubbed "Meta Compute" that would sell excess AI computing power to outside customers. While Meta's stock surged on the news, the announcement triggered fears of AI overcapacity across the semiconductor sector.reuters+3

The fallout was severe in Asia on Thursday. SK Hynix shares plunged nearly 15% on the Korea Exchange, while Samsung Electronics fell 9.1%, together erasing approximately $290 billion in market value. The Kospi closed down nearly 8%, and the Korea Exchange temporarily suspended program selling after circuit breakers were triggered. Tokyo's Nikkei 225 lost 2.5%, with memory maker Kioxia tumbling more than 13%.economictimes+2

Underwriters Face Stabilization Pressure

The crash arrives just eight days before SK Hynix's planned Nasdaq trading date. Analysts have noted that the consortium of underwriters and institutional investors committed to the offering have strong incentives to support the stock around the listing. The initial pricing range was based on a closing price of 2.555 million won per share on June 23 — well above where shares traded on Thursday.smartkarma+1

Despite the recent turmoil, the Kospi remains the world's best-performing major stock index in 2026, having advanced 77% year-to-date, driven largely by the AI-fueled rally in semiconductor stocks. SK Hynix shares have surged more than 300% this year and roughly 920% over the past 12 months, a run that propelled the company past the $1 trillion market capitalization mark in May.youtube+2