South Korean memory chip giant SK Hynix Inc. is set to debut on a US stock exchange, aiming to raise 45.45 trillion won, approximately $29.4 billion, through a listing of American Depositary Receipts (ADRs) on Nasdaq. This move caps a remarkable comeback story for the company in the artificial intelligence industry, positions it as the top supplier of High-Bandwidth Memory (HBM), and aims to meet the escalating demand for chips essential for global data center expansion. The offering is expected to be one of the largest share sales ever, comparable to Saudi Aramco's record IPO in 2019, and intends to provide a fresh pool of investors while potentially narrowing the valuation gap with competitors like Micron and Samsung Electronics.
The initial trading of these ADRs is tentatively scheduled for July 10. The company plans to issue 17.79 million new shares, with 10 ADRs representing one common share, and intends to use the entire proceeds for capacity expansion. Specifically, the funds will be directed towards building new fabrication plants in Yongin and Cheongju, and acquiring critical equipment such as extreme ultraviolet lithography machines, vital for producing advanced chips. This expansion is crucial, as HBM capacity for 2026 is already sold out, with shortages projected into 2027.
SK Hynix's operating profit for the first quarter recorded a record high of 37.61 trillion won, substantially exceeding analyst estimates, and sales nearly tripled. The company controlled 57% of the global HBM market share by revenue in Q4 2025. Shares listed in Seoul have surged over 300% this year, pushing the company's market value past $1 trillion. The US listing is anticipated to enhance SK Hynix's corporate valuation, expand its investor base, and solidify its status as a global leader in AI technology innovation, particularly by increasing its presence in the US market.
Underwriting the deal are major financial institutions including Bank of America, Citigroup, Goldman Sachs Group, and JPMorgan Chase. The size of the planned fundraising has increased significantly from initial estimates of $10 billion to $14 billion, reflecting strong market confidence and accelerated timelines. While the memory chip business is known for its cyclical nature, the current upswing, largely driven by AI, is expected to sustain demand well beyond the immediate future, with SK Hynix investing heavily to meet this long-term growth.
