SEOUL, March 17 (AJP) - SK hynix is considering a U.S. stock-market listing in a bid to woo global investors, SK Group Chairman Chey Tae-won said on Monday.
Choi, who is currently attending Nvidia's annual GTC conference in San Jose, told reporters, "We are reviewing a listing via American Depositary Receipts (ADRs) to expand the company's investor base."
ADRs allow non-U.S. companies to trade their shares on U.S. stock exchanges through depositary banks rather than by listing shares directly, making it easier for investors to purchase foreign stocks. Global chipmakers such as Taiwan's TSMC, use ADRs to trade on the New York Stock Exchange and attract international investors.
Chey's remarks appear to be part of efforts to raise SK hynix's profile among global investors, as the chipmaker's valuation remains relatively low despite its leading position in the high-bandwidth memory (HBM) market, a key component used in artificial intelligence and high-performance computing, compared with global rivals such as Micron.
It is nothing new, as SK Hynix has previously said on several occasions that it is exploring ways to enhance corporate value including a potential U.S. listing.
Chey warned of sharp swings in DRAM prices due to surging AI demand and pledged that the company will soon come up with measures to stabilize them.
At this year's GTC, which brings together industry leaders and developers to discuss the latest technological trends and runs until Thursday, SK hynix unveiled the world's first 16-layer stack of its sixth-generation HBM, known as HBM4, along with other next-generation memory solutions, showcasing its partnership with Nvidia.
Nvidia CEO Jensen Huang visited SK Hynix's booth while discussing cooperation with Chey, under their so-called "HBM alliance."
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