SK Hynix has priced its American depositary shares at $149 per share. Trading will begin today, July 10, on Nasdaq under the temporary ticker symbol SKHYV. On Monday, the stock will convert to the permanent ticker symbol SKHY.
The South Korean memory chip maker plans to raise about $26.5 billion (about 40 trillion won) through the offering, with the funds earmarked to finance new factories and equipment to meet growing demand for artificial intelligence chips.
Why investors are watching closely
The figure SK Hynix originally sought was lowered slightly, but even so, the sale still ranks as the largest U.S. equity debut by a foreign company. It also ranks as the second-largest stock sale in the world after SpaceX.
SK Hynix holds 56.4% of the global high-bandwidth memory market, according to US securities filings. These chips are used in Nvidia’s AI processors, and growing demand for AI memory is keeping prices at record highs until 2026.
The offering beats Alibaba’s $21.8 billion IPO in New York. It trails only SpaceX’s Nasdaq debut last month, which raised $75 billion.
Meanwhile in Seoul, SK Hynix’s share price is experiencing volatility along with the KOSPI index, where it weighs about 25%.
SK Hynix experienced rapid growth last year. Image source: Trading View
SK Hynix will use the proceeds to build a new manufacturing plant and a state-of-the-art packaging facility in South Korea. The company will also invest 11.9 trillion won in new EUV lithography equipment by the end of 2027.
Micron remains SK Hynix’s main competitor in the US in the memory chip market. Analysts expect the Nasdaq listing to narrow the valuation gap between the two after Micron’s market capitalization surged this year.
UBS advised clients to expect a premium. He is backing the ADR premium deal ahead of today’s debut.
Not everyone expects the boom to last.
“This is how memory always works in any megaloop or superloop… The problem is that it always fails badly.”
Daniel Newman, CEO of Future Group
What’s next for SK Hynix
SK Hynix shares are scheduled to open later today. According to reports of a seven-fold increase in demand, demand was seven times the available supply during the bookmaker’s time.
Investors will now be watching to see whether SK Hynix commands a premium to its Seoul-listed shares. They will also be monitoring whether there is still a place available to hold the remembrance rally.
Read Darrin Pollock’s original article “SK Hynix Listings on Nasdaq Today” for $149: What to Expect from Darrin Pollock at beincrypto.com