SK Hynix's upcoming $28 billion (approximately 42.5 trillion won) American Depositary Receipt (ADR) offering has reportedly attracted demand exceeding the available supply ahead of its price determination.
On July 7, Bloomberg News cited sources familiar with the matter, stating that SK Hynix has secured subscription demand significantly surpassing the offering amount for its ADRs.
The report indicated that strong buying interest is coming primarily from global long-term investment funds and investors specializing in technology stocks. Approximately 1,000 institutional investors participated in a management presentation held on July 6. Notably, major institutional investors such as Baillie Gifford, Coatue Management, and Situational Awareness Partners have expressed intentions to purchase up to $7 billion worth of ADRs in this offering.
SK Hynix began soliciting investors for the sale of a total of 177.9 million ADRs on July 6. The offering size, based on the closing price of common shares traded on the Seoul stock market on July 3, is estimated at around $28 billion. If the offering concludes as planned, it is expected to be the largest U.S. listing by a foreign company to date. One ADR represents one-tenth of a common share of SK Hynix.
The ADR offering amount represents about 2.5% of SK Hynix's market capitalization, which has more than tripled this year, surpassing $1 trillion despite global semiconductor stock volatility.
The ADR offering price is expected to be finalized in the early afternoon of July 9, New York time (early morning of July 10, Korea time). This will occur before trading resumes for SK Hynix's common shares on the Korean stock market and before the ADRs begin trading on the Nasdaq Global Select Market on July 10.
Bloomberg noted that due to restrictions on converting Korean-listed stocks to ADRs, arbitrage opportunities may be limited, suggesting that the ADRs could trade at a premium.
Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase are serving as underwriters for this transaction.
* This article has been translated by AI.
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