SK Hynix made its debut on the Nasdaq market on July 10, confirming the issuance price of its American Depositary Receipts (ADR) at $149 per share. The listing has generated interest regarding whether it will lead to a rebound in SK Hynix's stock price, which has been sluggish this month.
According to the financial investment industry, SK Hynix has set the initial public offering (IPO) price for 177.9 million ADRs at $149 per share. This price is approximately 2.9% higher than the previous day's closing price of 2,186,000 won (about $144.5) for SK Hynix's common stock, when converted to ADR terms. One ADR represents one-tenth of a common share in Korea.
Through this offering, SK Hynix will issue approximately 17.79 million new shares, accounting for about 2.5% of its total shares. The company aims to raise a total of $26.57 billion (about 40 trillion won), marking the largest IPO by a foreign company in the U.S. and the second largest overall, following SpaceX's $85.7 billion IPO.
Attention is focused on whether the Nasdaq listing can change the recent downward trend of the stock. As of July 8, SK Hynix's stock price had fallen to 2,007,600 won, down from 2,917,000 won on June 25. Despite the Nasdaq listing news, SK Hynix's stock experienced a decline early in the trading session.
Market analysts are looking to the example of TSMC, which saw its stock value reassessed following its ADR listing. TSMC listed its ADRs in the U.S. in October 1997. Dongwon Kim, a researcher at KB Securities, noted, "The expansion of the global investor base allowed TSMC's ADR to form a premium over its common stock, leading to ongoing demand for conversion and arbitrage between the two." He explained that this created a positive feedback loop of reassessment between the Taiwanese common stock and the U.S. ADR.
In the securities industry, expectations for a reassessment of corporate value have led to upward adjustments in target prices. Among the eight securities firms that released corporate analysis reports on SK Hynix this month, six raised their target prices, suggesting a range between 3.8 million and 4.2 million won.
However, some analysts express caution regarding the reassessment of the common stock. Manhee Lee, a researcher at BNK Investment & Securities, stated, "While the issuance of ADRs provides convenience for overseas trading, it will not change the valuation of the common stock." He added, "The recent decline in stock prices is due to weakening demand, and the performance momentum is expected to wane after the end of the year, with valuations likely to be overestimated next year."
Meanwhile, SK Hynix's ADRs will begin temporary trading on the Nasdaq under the ticker symbol 'SKHYV' starting July 10. Regular trading will transition to the ticker symbol 'SKHY' from July 13.
* This article has been translated by AI.
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