Key facts
- SK Hynix plans to list ADRs on the Nasdaq on July 10.
- The company aims to raise up to $29.43 billion through the offering.
- Proceeds will fund chip factory expansion, including a new facility in Yongin.
- The listing could be the largest ADR offering ever, surpassing Alibaba's 2014 debut.
- SK Hynix shares jumped nearly 10% on the Kospi following the announcement.
South Korea's benchmark Kospi index surged over 5% on Thursday, led by heavyweight chipmakers Samsung Electronics and SK Hynix, as investors returned to battered semiconductor stocks. SK Hynix shares gained nearly 10% after filing for a blockbuster Nasdaq listing that could raise as much as 45.45 trillion won, or $29.4 billion, to fund chip factory expansion. Sentiment was also buoyed after memory-chip maker Micron topped Wall Street's revenue estimates and issued upbeat guidance, reinforcing optimism about AI-related demand.
The gains in the Kospi followed a 3.3% rebound on Wednesday, after the benchmark recovered from Tuesday's nearly 10% plunge. The selloff earlier this week had spilled into global markets, dragging down US semiconductor stocks as investors questioned lofty valuations across the AI trade and rotated into more defensive sectors.
South Korea has been one of the world's best-performing stock markets this year, fueled by a surge in semiconductor and AI-related shares. Analysts remain constructive on long-term AI-related chip demand, viewing the recent volatility as a correction rather than the end of the sector's run, though they warn that volatility could persist.