SK Hynix prices record $26.5B U.S. listing at $149 per ADR

SK Hynix priced its ADRs at $149, raising about $26.5 billion in what would be the largest-ever U.S. listing by a foreign company, according to Reuters.reuters
Cornerstone investors Baillie Gifford, Coatue Management, and Situational Awareness Partners committed up to $7 billion, roughly 25% of the offering, per an SEC filing.marketwatch+1
Proceeds will fund AI memory chip capacity expansion, including the Yongin Y1 fab plant; trading under ticker SKHY begins Friday on the Nasdaq.insiderfinance+1

SK Hynix is set to make its debut on the Nasdaq on Friday after its landmark American depositary receipt offering drew demand more than seven times the available shares, according to Reuters. The South Korean memory chipmaker guided investors toward a price of $149 per ADR, a 3.1% premium over Thursday's closing price in Seoul, Bloomberg reported.reuters+1

At that price, the offering would raise approximately $26.5 billion, making it the largest-ever U.S. listing by a foreign company, surpassing Alibaba's $25 billion offering in 2014.financialexpress+1

Cornerstone Backing and Investor Appetite

Three cornerstone investors — Baillie Gifford, Coatue Management, and Situational Awareness Partners — indicated interest in purchasing up to $7 billion worth of ADRs, according to an SEC filing disclosed during bookbuilding. That sum represents roughly 25% of the total offering size.marketwatch+1

The broader book attracted strong demand from global long-only funds and technology-focused investors, Bloomberg reported. Bookbuilding closed Wednesday at 4 p.m. Eastern Time, with pricing guidance issued after Thursday's close of the Korean market, Reuters reported. The ADRs will trade under the ticker SKHY.finance.yahoo+3

Proceeds and Capacity Expansion

SK Hynix is offering 17.79 million new shares — equivalent to approximately 177.9 million ADRs at a ratio of ten ADRs per common share — representing about 2.5% of its total outstanding equity. A 90-day lock-up period applies to the company and its affiliates.top1markets+1

The company has stated that all proceeds will fund capacity expansion, including construction of the Yongin Y1 fabrication plant, advanced packaging facilities, and high-bandwidth memory chipmaking equipment. The investment comes as SK Hynix seeks to maintain its lead in HBM chips, a critical component powering artificial intelligence data centers.kedglobal+1

Risks and Market Context

Despite the oversubscription, some analysts have flagged risks. UBS recommended buying the ADR over the Korean-listed stock, but the Financial Express noted that SK Hynix trades at nearly double its ten-year median valuation, at what some describe as the peak of a memory cycle. SK Hynix shares fell nearly 3% in Seoul trading during the bookbuilding period, underperforming the broader Kospi, which dropped more than 5%.investing+1

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