The offering of 17.79 million shares represents about 2.5% of the total shares outstanding.
The underwriters for the offering are BofA Securities, Citigroup, Goldman Sachs and JP Morgan.
Reuters previously reported that the company hopes to raise about $29.4 billion.
South Korean memory chip maker SK Hynix filed a registration statement with the Securities and Exchange Commission for a public offering of American depositary shares, a major step toward listing on the Nasdaq Global Select Market under the ticker symbol “SKHY.”
The company plans to issue up to 17.79 million shares, representing about 2.5% of its shares outstanding, according to an SEC filing Tuesday. The size of the offer was structured to ensure that its largest shareholder, SK Square, would retain at least a 20% stake, as required by South Korean law.
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SK Hynix is a major supplier of advanced HBM chips to Nvidia.
SKHY will reportedly use proceeds to build semiconductor manufacturing facilities
The final offering price will be determined through negotiations with underwriters based on the company’s share price and prevailing market conditions, although Reuters previously reported that the company was looking to raise about $29.4 billion, with the ADSs expected to cost $166 apiece.
The underwriters for the offering are BofA Securities, Citigroup, Goldman Sachs and JP Morgan.
The company said it intends to use the proceeds for general corporate purposes, including capital expenditures. Previous reports said the funds would support the construction of semiconductor manufacturing facilities in South Korea and the purchase of advanced extreme ultraviolet (EUV) lithography equipment.
The announcement comes a day after Samsung Electronics, SK Hynix and the South Korean government announced plans to invest about $590 billion in a new chip manufacturing center that will include four manufacturing plants and double DRAM production in South Korea over the next five years.
Nasdaq listing will boost SKHY’s valuation
Last week, HSBC said it expects SK Hynix’s upcoming Nasdaq listing to boost its valuation by about 20%, lifting its price-to-book ratio from 2.8 to 3.4 and helping close the valuation gap with rival Micron Technology (MU).
Overall, the IPO market is at a record pace for the year, with companies raising $251 billion through June 26, according to Bloomberg.