SK Hynix Inc.'s American depositary receipts (ADRs) were indicated to open 17% above their offering price of $149 each, trading at $175 in pre-market indications by 9:56 a.m. on Friday in New York. The South Korean memory chipmaker successfully raised $26.5 billion in its US listing, marking it as the largest ever by a foreign company in the US market.
The company sold 177.9 million American depositary shares, each equivalent to one-tenth of a common share traded in Seoul, for $149 apiece. This offering price represented a 2.9% premium over SK Hynix's closing share price in Seoul, which is unusual for large equity offerings that typically involve a discount to attract investors. Trading on the Nasdaq commenced on Friday under the ticker "SKHYV," with regular trading under "SKHY" expected to begin on Monday.
The successful listing underscores strong investor demand for a key player in the artificial intelligence (AI) supply chain, with demand for the offering reportedly over seven times the number of available shares. Analysts view the US listing as strategically important for SK Hynix, as it is expected to broaden its shareholder base, provide easier access to substantial investment capital, and help narrow its valuation gap with US-listed competitor Micron Technology.
