Strong Demand for SK hynix US ADR Offering... Subscription Volume Far Exceeds $28 Billion

Expected to Set Record for Largest U.S. Listing by a Foreign Company
High Possibility of Arbitrage Trading Restrictions

SK hynix, which is set to go public on the NASDAQ in the United States this week, is showing signs of a strong market debut. Ahead of the finalization of the offering price, it has been reported that global investors are flocking to the deal, with the subscription volume far exceeding the amount of shares on offer.

According to Bloomberg on July 7 (local time), strong initial demand from global long-term investment funds and technology-focused investors has flowed into SK hynix's American Depositary Receipt (ADR) offering. It has been reported that around 1,000 institutional investors participated in a marketing call with company management held on July 6.

Starting July 6, SK hynix officially began marketing to sell 177.9 million ADR shares. Based on the closing price of common shares on the KOSPI market as of July 3, the offering is valued at approximately 28 billion dollars. If the listing proceeds as scheduled, it is expected to become the largest-ever U.S. listing by a foreign company.

One ADR represents one-tenth of a common share of SK hynix. The offering volume is equivalent to about 2.5% of SK hynix's market capitalization. Since the beginning of this year, SK hynix's market capitalization has more than tripled, surpassing 1 trillion dollars. This surge has been driven by growing expectations for increased demand for artificial intelligence (AI) memory, which has boosted the share price, even amid heightened volatility in global semiconductor stocks.

The offering price is expected to be finalized in the early afternoon of July 9, New York time. This is before SK hynix shares resume trading on the Korean stock market and before the ADRs begin trading on the NASDAQ Global Select Market on July 10.

Bloomberg reported that there are restrictions on converting Korean-listed shares into ADRs, which may limit arbitrage trading. In such a scenario, it is possible that the ADRs may trade at a premium compared to SK hynix common shares in Korea.

This content was produced with the assistance of AI translation services.