Key facts
- SK Hynix will close bookbuilding for its $28 billion ADR offering on Wednesday.
- Investor orders have already covered the offering multiple times.
- The sale is one of the world's largest new share sales.
- Baillie Gifford Overseas Limited, Coatue Management, and Situational Awareness Partners expressed interest in purchasing up to $7 billion in ADRs.
- The ADRs are expected to begin trading on the Nasdaq on July 10.
SK Hynix is set to close the bookbuilding process for its substantial $28 billion American depositary receipt (ADR) offering on Wednesday, according to a source familiar with the matter. The offering has reportedly been oversubscribed multiple times, indicating strong investor demand for a stake in the prominent South Korean chip manufacturer.
Underwriters have informed investors that the bookbuilding will conclude at 4 p.m. U.S. Eastern Time on Wednesday. Pricing guidance is anticipated following the close of the South Korean market on Thursday, with final allocations to be determined later that day in the U.S. SK Hynix had previously stated in filings that the final price would be set on Thursday, and the ADRs are scheduled to commence trading on the Nasdaq on July 10.
Significant interest has been shown by U.S.-based investors, with some placing orders exceeding $1 billion, while others started in the $200 million range. The company had also disclosed that Baillie Gifford Overseas Limited, investment funds managed by Coatue Management, and Situational Awareness Partners have separately indicated interest in purchasing a combined total of up to $7 billion of its U.S. ADRs.
The robust investor response underscores the continued demand for shares in one of the world's leading chipmakers, even amidst a broader downturn in global tech stocks and renewed geopolitical tensions in the Middle East. SK Hynix shares experienced a decline of up to 3.59% on Wednesday. The company launched the ADR sale on Monday, offering 17.79 million new shares, positioning it among the world's most valuable technology firms. This offering is expected to rank as the second-largest share sale globally, following SpaceX's record $85.7 billion IPO last month, and surpassing notable offerings by Saudi Aramco and Alibaba.
SK Hynix is a critical supplier of high-bandwidth memory chips, essential components for AI systems utilized by major tech companies such as Nvidia and Alphabet Inc's Google. Each ADR represents one common share, with a reference price of 242,500 won per ADR established based on SK Hynix's closing price in Seoul on July 3.