SK Hynix shares have rebounded more than 7% in early trading as global investor interest surges ahead of its American Depositary Receipt (ADR) listing. The stock, which fell below 2 million won in the previous day's NextTrade after-market, has recovered to the 2.2 million won range within a day.
As of 9:36 a.m. on July 9, SK Hynix was trading at 2,228,000 won, up 152,000 won (7.32%) from the previous trading day, according to the Korea Exchange.
Market analysts believe that the upcoming ADR offering on July 10 (local time) on the Nasdaq Global Select Market has improved investor sentiment. According to Bloomberg, the SK Hynix ADR offering has seen demand exceeding seven times the available shares, indicating strong interest from global long-term investors and sovereign wealth funds.
The SK Hynix ADR, listed under the ticker 'SKHYV', will begin provisional trading on July 10 and transition to regular trading on July 13.
Analysts expect the ADR listing to trigger a reevaluation of the company's value. Kim Dong-won, head of research at KB Securities, stated, "The upcoming U.S. ADR listing on July 10 is expected to enhance accessibility for global investors, leading to a simultaneous reevaluation of the U.S. ADR and the Korean stock's valuation."
He added, "When TSMC listed its ADR in the U.S. in 1997, it created a premium for the ADR compared to the home stock, leading to a virtuous cycle of price differences being exploited through conversion and arbitrage trading. A similar reevaluation trend is likely for SK Hynix between its U.S. ADR and Korean stock."
Kim also forecasted that memory prices in the second half of the year would exceed market expectations, noting that SK Hynix shares, currently trading at a price-to-earnings ratio (PER) of 4.5, have significant upward potential, and the semiconductor rally is not over yet.
Additionally, the rebound in U.S. semiconductor stocks and recent buying interest following price drops have contributed to the rise in SK Hynix's stock price.
Earlier, SK Hynix's stock fell below the 2 million won mark in the previous day's NextTrade after-market. However, it successfully rebounded in early trading today, recovering to the 2.2 million won range.
* This article has been translated by AI.
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