Key facts
- SK Hynix raised $26.5 billion in its Nasdaq IPO, the largest ever by a foreign firm in the U.S.
- The offering price was set at $149 per American depositary share (ADS).
- SK Hynix's success is driven by demand for its high-bandwidth memory (HBM) chips, essential for AI.
- The company plans for physical manufacturing plants in the U.S.
- Cboe expects options on SK Hynix's shares to trade two business days after its Nasdaq debut.
South Korean chipmaker SK Hynix has completed a historic U.S. listing, raising $26.5 billion on the Nasdaq with an offering price of $149 per American depositary share (ADS). This debut is the largest ever by a foreign company on a U.S. exchange and the largest ADR offering of all time. The company's success is attributed to strong demand for its high-bandwidth memory (HBM) chips, which are critical components for AI accelerators.
Nvidia is SK Hynix's largest customer for its advanced HBM chips. Investors are betting on continued robust AI spending and sustained memory chip shortages. The company also plans for physical manufacturing plants in the U.S.
SK Group chairman Chey Tae-won's 2012 acquisition of the then loss-making Hynix is viewed as a significant payoff, driven by a decade-long bet on HBM technology. Despite concerns about potential oversupply in the cyclical memory industry, Chey has emphasized the need for expansion to meet demand.
Derivatives exchange Cboe Global Markets expects to list options on SK Hynix's U.S.-listed shares two business days after the stock's trading debut. Options trading typically increases liquidity and price discovery in a stock.