South Korean chipmaker SK Hynix raised $26.5 billion in its U.S. share offering, marking the largest listing ever by a foreign firm in the U.S. The company sold 177.9 million American depositary shares for $149 each, with shares scheduled to begin trading on the Nasdaq. Demand for the offering was reportedly over seven times the number of available shares, demonstrating significant investor interest in a key player within the AI supply chain.
This U.S. listing provides SK Hynix with easier access to substantial investment capital from the world's largest economy, which presents fewer barriers compared to South Korea. The offering is also seen as a crucial "yardstick to test the water" for continued investor enthusiasm in memory chip makers, according to Seoul National University finance professor Jaewon Choi.
SK Hynix plans to utilize the proceeds from this large offering to expand its production capacity, particularly for advanced memory chips like high-bandwidth memory (HBM) used in AI accelerators. This move is critical given the increasing global demand for AI infrastructure. The company's valuation had already surpassed $1 trillion in its home country in May, propelled by the booming demand for AI chips.
The Nasdaq listing is also anticipated to help SK Hynix address its valuation gap compared to U.S. rival Micron Technology, making its shares more accessible to international investors. Despite a turbulent period for its stock, which had seen a 7% decline prior to the debut, SK Hynix shares jumped 14% on its Nasdaq debut, though some analysts noted this reflected profit-taking rather than disappointment. The company remains a dominant supplier of HBM chips, positioning it centrally in the global AI infrastructure build-out.
