Key facts
- SK Hynix Inc. debuted on the Nasdaq with its American depositary receipts (ADRs).
- The offering raised approximately $26.5 billion.
- ADRs were priced at $149 each and began trading at $170.
- The offering is the largest share sale by a foreign company in U.S. history.
- SK Hynix ADRs surged 14% on their Nasdaq debut.
- Demand for the offering exceeded available shares sevenfold.
South Korean memory chip giant SK Hynix Inc. has raised $26.5 billion (KRW 40 trillion) in its U.S. market debut, the largest share sale by a non-American company in U.S. history. The company sold 177.9 million American depositary shares (ADRs) at $149 each, a price that represented a 2.7% premium to its three-day average on the Korea Stock Exchange. Demand for the offering reportedly exceeded available shares sevenfold.
SK Hynix's ADRs began trading on the Nasdaq under the temporary ticker SKHYV, opening 14% above their IPO price and continuing to rise. The company's success is attributed to its crucial role in supplying high-bandwidth memory (HBM) chips essential for AI GPUs, particularly for Nvidia. The funds raised will be allocated to a new fab and packaging facility in South Korea, as well as EUV scanners.
Meanwhile, U.S. Commerce Secretary Howard Lutnick is reportedly in discussions with SK Hynix and Samsung about building new chip factories in the United States, aiming to boost domestic chip production and counter South Korea's dominance in the sector. This comes as rival Micron Technology announced plans to invest $250 billion in new U.S. manufacturing.