South Korean chipmaker SK Hynix began trading American depositary receipts on Nasdaq on Friday after completing the largest U.S. equity offering by a foreign company, raising $26.5 billion to fuel expansion in high-bandwidth memory chips used for artificial intelligence.
The company priced 177.9 million ADRs at $149 each on Thursday. Trading started Friday under the temporary ticker SKHYV before switching to SKHY. Ten ADRs represent one common share listed in Seoul. The offering was more than seven times oversubscribed.
Proceeds will support capital expenditures for new fabrication facilities, advanced packaging plants, and equipment to meet demand for HBM chips. SK Hynix holds the leading global market share in these specialized memory products essential for AI servers.
The debut marks the second-largest share sale globally after SpaceX’s recent IPO and tops Alibaba’s 2014 U.S. listing. It gives U.S. investors direct dollar-traded access to the company without foreign account requirements or currency conversion.
SK Hynix shares in Seoul rose earlier in the session but closed slightly lower at 2.18 million won. The company’s market capitalization had earlier topped $1 trillion. Its first-quarter net income reached 40.34 trillion won.
Nvidia CEO Jensen Huang has named SK Hynix as the company’s largest memory partner and signed multi-year agreements highlighting its leadership in high-bandwidth memory (HBM) chips, with industry analysts noting that shortages of advanced memory are expected to persist for years.
The listing follows years of investment that positioned SK Hynix at the center of the AI boom. The company was acquired by SK Group in a rescue deal roughly 14 years ago for about $3 billion.
Institutional demand included indications of interest totaling up to $7 billion from funds linked to Baillie Gifford, Coatue Management, and Situational Awareness Partners. The offer priced at a premium to recent Seoul levels, unusual for large sales.
Analysts see the U.S. debut as a test of sustained AI investment appetite amid recent semiconductor stock volatility. SK Hynix plans to use funds for facilities in Yongin and Cheongju plus EUV lithography tools.
Provided by Dallas Express
