SK Hynix Inc., a leading producer of high-bandwidth memory (HBM) chips vital for artificial intelligence, is planning a significant US stock listing to raise 45.45 trillion won (approximately $29.4 billion). This move is a strategic effort to enhance its profile and access American investors, building on its recent success in the AI industry as a top HBM supplier.
The South Korean chipmaker, which confidentially filed with the U.S. Securities and Exchange Commission in March, aims for a Nasdaq listing possibly as early as August. Citigroup, JPMorgan, Goldman Sachs, and Bank of America have been enlisted to manage the offering. This listing would allow US investors to buy SK Hynix stock in dollars, potentially placing it alongside competitors like Micron and allowing investors to value memory chips as critical AI inputs rather than a volatile commodity.
Analysts, such as Kim Sun-woo of Meritz Securities, anticipate that once trading begins, funds holding Micron stock will shift to SK Hynix, leading to a sharp repricing. This drive for a US listing also reflects SK Hynix's ambition for a "rerating" in the market, having recently surpassed Samsung Electronics to become South Korea's most valuable listed company. While the company has not confirmed a specific fundraising target, estimates have ranged from $14 billion to $26 billion, with the $29.4 billion figure being an outside estimate.
The capital raised would support ongoing expansion, including a 31 trillion won investment in a new plant at its Yongin chip cluster south of Seoul. SK Hynix reported a record operating profit of 37.6 trillion won in the first quarter and recently shipped samples of its 12-layer HBM4E chips. The company hopes to address the persistent shortage of high-bandwidth memory, which has become a bottleneck for AI accelerator development.
However, the exact timing of the listing remains flexible, as regulatory approval from the SEC involves a back-and-forth process. The method of raising capital, whether through new share issuance (which dilutes existing holders) or other means like buybacks, is also a point of discussion. The Korea Corporate Governance Forum has opposed new share issuance, suggesting the company has sufficient cash flow for the listing through buybacks.
