SK Hynix Inc. has initiated the formal marketing process for its U.S. listing, aiming to sell American Depository Receipts (ADRs) representing approximately 17.79 million common shares, valued at about $28 billion based on Friday's closing price in Seoul. This move follows a remarkable year for the company's Seoul-traded stock, which has rallied about 260%, pushing its market capitalization above $1 trillion. The company expects the ADRs to begin trading on the Nasdaq Global Select Market under the symbol SKHY on July 10, with final pricing anticipated on Thursday.
This $28 billion offering would be among the largest first-time share sales ever, rivalling Saudi Aramco's $29.4 billion debut in 2019 and surpassing Alibaba's 2014 listing. The South Korean chipmaker is capitalizing on surging investor demand in the memory-chip sector, driven by the artificial intelligence (AI) boom. SK Hynix's early adoption of High-Bandwidth Memory (HBM) has made it a key supplier for Nvidia Corp., securing 57% of the global HBM market share by revenue in Q4 2025 according to Counterpoint Research, and contributing to its record-high operating profit of 37.61 trillion won in Q1, with sales nearly tripling to 52.58 trillion won.
Despite the significant gains, some investors are wary of the sector's volatility, especially after a recent drop in SK Hynix's shares following Micron's earnings report. SK Hynix's stock was down 3.4% to 2,343,000 won on Monday, about 21% below its peak, even with its substantial year-to-date rally. Analysts believe a U.S. listing could help narrow the valuation gap with rivals like Micron Technology and potentially lead to inclusion in indexes like the Philadelphia Semiconductor Index, attracting passive investment. The proceeds from the offering will primarily be used for building chip factories and purchasing advanced chipmaking equipment, such as extreme ultraviolet lithography scanners.
Cornerstone investors, including Baillie Gifford Overseas and funds managed by Coatue Management and Situational Awareness Partners, have expressed interest in purchasing up to $7 billion of the ADRs. However, concerns remain about "memory inflation" and its potential impact on spending for AI infrastructure, mobile devices, and PCs, which could temper the sector's growth. The success of SK Hynix's listing will serve as a crucial indicator for the broader memory sector and the AI-chip rally in the second half of the year.
