- SK Hynix has announced plans to raise around $29 billion through a US stock market listing by issuing American Depositary Receipts (ADRs).
- The listing will be one of the biggest stock listings in history, aiming to cash in on the massive investor demand for AI.
- The company intends to issue up to 17.79 million new shares worth approximately 45.45 trillion won ($29.4 billion
South Korean semiconductor company SK Hynix has announced plans to raise around $29 billion through a US stock market listing by issuing American Depositary Receipts (ADRs). The upcoming listing will be one of the biggest stock listings in history, aiming to cash in on the massive investor demand for AI.
According to a regulatory filing, the company intends to issue up to 17.79 million new shares worth approximately 45.45 trillion won ($29.4 billion), CNBC reported.
SK Hynix said it expects to start trading on July 10, but added that the dates were tentative and subject to change. The chipmaker said the US listing would broaden its investor base and help improve the market's assessment of the company's value.
“We expect to elevate our status as a global company by broadening our touchpoints in the United States, the epicenter of AI technological innovation,” the company said in the filing.
The planned fundraising comes as demand for AI-related technologies continues to surge worldwide. SK Hynix has emerged as one of the biggest beneficiaries of the AI boom due to its dominance in the high-bandwidth memory (HBM) segment.
According to Counterpoint research director MS Hwang, the company controls roughly 60 per cent of the global HBM market. “What is clear is that SK is definitely the top notch player in HBM. And it is better in cost of manufacturing. So its operating margin is the best. So it has the best product, lowest cost. What else do you need?” he told CNBC on June 17.
Investor enthusiasm surrounding artificial intelligence has propelled SK Hynix's stock sharply higher this year, helping the company overtake Samsung Electronics as South Korea's most valuable listed firm. Its market valuation has risen over 280% this year, pushing its market capitalization past $1 trillion.
The proceeds from the listing will be used to fund the company's expansion plans. SK Hynix is currently developing the Yongin Semiconductor Cluster in South Korea, a large-scale manufacturing complex expected to begin operations in 2027. The company is also building its first facility in the United States through a $4 billion project in Indiana.
Part of the capital raised is expected to be invested in chipmaking equipment, including extreme ultraviolet scanner supplied by Dutch semiconductor equipment maker ASML, reported Reuters. According to the company, a group of major investment banks, including BofA Securities, Citigroup Global Markets, Goldman Sachs and JP Morgan Securities, has been appointed to manage the offering.
