SK Hynix is set to raise approximately 40 trillion won (about $26.5 billion) through its initial public offering (IPO) on the U.S. Nasdaq. The company’s strength in high-bandwidth memory (HBM) for artificial intelligence (AI) semiconductors has led to a record-breaking IPO for a foreign company in the U.S.
On July 10, SK Hynix announced that it has finalized the offering price for its American Depositary Receipts (ADRs) at $149 per share. ADRs allow foreign companies to trade their shares on U.S. stock exchanges. The total number of shares being issued is 177.9 million, resulting in a total fundraising amount of $26.57 billion, equivalent to about 40 trillion won.
The offering price is slightly higher than the domestic stock price. Ten ADRs correspond to one share of SK Hynix common stock. On the previous day, SK Hynix's common stock closed at 2,186,000 won. Based on an exchange rate of 1,509.9 won to the dollar, the ADR offering price is approximately 2.9% higher than the domestic closing price.
This IPO surpasses the previous record held by Alibaba, which raised $25 billion, making it the largest IPO for a foreign company in the U.S. It is also the second-largest IPO in U.S. history, following SpaceX's $85.7 billion.
Investor demand has been robust. Reuters reported that orders exceeded seven times the available shares. The expansion of the AI server market and increasing demand for HBM have contributed to heightened investor interest in SK Hynix.
SK Hynix's ADRs will begin trading under the temporary ticker symbol 'SKHYV' on the first day. From July 13, they will trade under the official ticker symbol 'SKHY.' The entire offering process is expected to conclude on July 14.
The lead underwriters for the offering are Bank of America, Citigroup, Goldman Sachs, and JP Morgan.
* This article has been translated by AI.
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