Institutional buyers such as global long‑only funds, tech‑focused funds, sovereign wealth funds, and Asian‑focused investors have shown interest in the 177.9 million American depositary receipts on offer, according to several sources.
A video segment notes that South Korea's stock market has risen roughly 200% over the past year, driven by an AI‑fueled semiconductor boom. However, extreme swings and dependence on just a couple of firms suggest a potential bubble. According to a previous SEC document, each ADR corresponds to a tenth of a common share.
SK Hynix has been a major beneficiary of the AI boom, supplying high‑bandwidth memory chips critical for data centers and AI accelerators. This demand has propelled its stock and made the US listing highly anticipated.
Get your free investing masterclass bonus when you join Market Briefs, our free daily newsletter
SK Hynix's dominance in high‑bandwidth memory (HBM) technology has made it a key supplier to NVIDIA and other AI chipmakers, while the US IPO positions the company to tap a broader investor base and fund future expansion. The company's HBM chips are integral to AI training and inference workloads in data centers, and SK Hynix has invested heavily in expanding production capacity to meet surging demand. The offering also comes amid a government‑backed $880 billion semiconductor investment program in South Korea, highlighting the strategic importance of the industry to the national economy. This massive state-led initiative aims to strengthen domestic chip production and reduce reliance on foreign suppliers, creating a favorable backdrop for SK Hynix's growth ambitions and its debut on US markets.
"Discussions are still in progress and terms may shift," sources familiar with the matter said. SK Hynix representatives declined to comment.
The US listing arrives as SK Hynix's shares in Korea and those of peers like Micron have dropped recently, as the feverish demand for AI infrastructure bets subsides. SK Hynix stock fell 5.7% in Seoul on Wednesday and has lost 30% since a record peak in late June, though it remains about triple its level at the start of 2024.
Underwriters for the SK Hynix offering plan to close the order book at 4 p.m. Wednesday. Bank of America, Citigroup, Goldman Sachs, and JPMorgan are leading the sale, with nine additional banks involved.
The ADRs will start when‑issued trading Friday on Nasdaq under ticker SKHYV, switching to SKHY for regular trading starting July 13.
Subscribe to Market Briefs, our free daily newsletter, and claim your bonus investing masterclass
