SK Hynix Inc. is set to price its highly anticipated U.S. American Depositary Receipt (ADR) offering at $149 per share, positioning itself to raise approximately $26.5 billion. This valuation would make it the largest U.S. listing by a foreign enterprise, surpassing Alibaba's previous record, according to a Bloomberg report. The offering has seen robust demand, with reports indicating it was oversubscribed by more than seven times, attracting significant interest from global long-only funds, technology-themed funds, and sovereign wealth funds.
This blockbuster debut reflects SK Hynix's emergence as a crucial supplier of high-bandwidth memory (HBM), essential for artificial intelligence infrastructure. The company plans to use the proceeds to fund capacity expansion and continued development in AI high-bandwidth memory. The U.S. listing also aims to provide SK Hynix access to a broader investor base and potentially higher valuations compared to its Korean shares.
Analysts, including those from UBS, have highlighted potential arbitrage opportunities arising from the U.S. listing. They suggest that the ADRs, priced at a slight premium of about 3% over the company's Korean shares, offer improved holding efficiency and lower costs for global investors, potentially leading to cross-market price inefficiencies. Trading for SK Hynix ADRs under the ticker SKHY is expected to begin on Nasdaq on July 13, following some when-issued trading.
