SK Hynix targets $29bn in Nasdaq ADR listing

SK Hynix filed with the US Securities and Exchange Commission to list American Depositary Receipts on Nasdaq and aims to raise more than $29 billion by issuing 17.79 million new shares, with trading expected to start on 10 July.

SK Hynix said the proposed share sale would value the South Korean memory chip company at $1.2 trillion. The company plans to issue 17.79 million new shares and raise more than $29 billion, equivalent to about €26.7 billion. Mobile World Live reported the filing would make the deal the second-largest initial public offering on record if completed at the target size.

SK Hynix said it will use the proceeds to build chip factories in South Korea and buy manufacturing equipment, including extreme ultraviolet, or EUV, lithography scanners. The company already has an order with ASML worth 12 trillion won, reported as about €8.7 billion.

SK Hynix supplies Nvidia and Google and competes in high-bandwidth memory, or HBM, with Samsung Electronics and Micron. According to the source report, SK Hynix shares have quadrupled this year amid demand linked to artificial intelligence. The report also cited FTSE Russell's Indrani De, who said SK Hynix benefited from entering the HBM segment early and from strong demand, while Korean companies hold an 80% share in the custom segment referenced in the report.