SK Hynix Inc. is set to raise 45.45 trillion won ($29.4 billion) through a major US listing, aiming to boost capacity in response to the escalating demand for memory chips driven by artificial intelligence. This significant offering could rank among the top five share sales globally, comparable to Saudi Aramco's record IPO in 2019, according to Bloomberg's data. This move comes as companies across the AI supply chain are actively seeking to expand their operations.
The South Korean chipmaker intends to use the proceeds from this stock offering to build a new chip factory in South Korea, an advanced packaging facility, and acquire critical chipmaking equipment, including extreme ultraviolet (EUV) scanners. This investment is crucial as SK Hynix is a primary supplier of high-bandwidth memory (HBM) chips, essential components for AI systems used by major players like Nvidia and Google. The company’s shares listed in Seoul have seen a substantial increase of over 300% this year, surpassing Samsung to become South Korea's most valuable company with a market capitalization of approximately $1.2 trillion.
The listing of American Depositary Receipts (ADRs) on Nasdaq is scheduled for July 10, with the pricing finalized after bookbuilding. Bank of America, Citigroup Global Markets, Goldman Sachs, and JP Morgan Securities are managing the offering. This US listing is expected to provide SK Hynix access to a broader investor base and potentially help bridge any valuation gap compared to competitors like Micron and Samsung, as well as providing dollar funding for its massive factory investments.
