Global Market: SK Hynix's Nasdaq ADR debut raises $26.5 billion amid AI chip boom

South Korean memory chipmaker SK Hynix has raised about $26.5 billion through its American Depositary Receipt (ADR) offering, pricing the issue at $149 per ADR, according to a U.S. regulatory filing. The fundraising underscores strong global investor appetite for companies at the heart of the artificial intelligence (AI) semiconductor supply chain, Reuters reported.

The ADRs have been priced at a 2.7% premium to the company's average share price over the previous three trading sessions in Seoul, according to a filing submitted to the Korea Exchange on Friday. The shares are scheduled to begin trading on the Nasdaq under the ticker symbol "SKHY".

The offering comes as SK Hynix strengthens its position as the world's leading supplier of high-bandwidth memory (HBM) chips, which are essential components used alongside advanced AI processors. The proceeds will be used to finance new manufacturing facilities and equipment to meet rapidly growing AI-related demand, Reuters reported.


Investor demand for the offering was robust, with the share sale reportedly attracting orders worth more than seven times the available shares, according to a person familiar with the matter cited by Reuters. SK Hynix declined to comment on the pricing or demand figures.

The company had earlier referenced an indicative ADR price of 242,500 won ($160.80) based on its July 3 closing price in Seoul. On Thursday, SK Hynix shares closed at 2,186,000 won, with 10 ADRs representing one common share.

SK Hynix shares were up 2.8% at the opening of trading in Seoul on Friday, although they underperformed the broader market, which gained 4.5%.

The U.S. listing is also expected to help narrow the valuation gap between SK Hynix and U.S.-based rival Micron Technology. Despite trailing SK Hynix in key memory segments, Micron has benefited from direct access to the world's largest investor base through its U.S. listing. Reuters reported that Micron trades at a 12-month forward price-to-earnings ratio of 6.66 times, compared with 5.5 times for SK Hynix.

SK Hynix continues to compete with domestic rival Samsung Electronics, the world's largest memory chipmaker by production volume. However, the company has emerged as the dominant supplier of HBM chips, placing it at the centre of the global AI infrastructure buildout.

The chipmaker's long-term investment in HBM technology has translated into surging earnings as demand for AI servers and data centres accelerates. Nvidia has previously identified SK Hynix as its largest memory partner, while industry executives continue to expect tight supply conditions for advanced memory chips over the next few years, Reuters reported.

Although semiconductor stocks have cooled in recent weeks amid concerns over AI spending, SK Hynix remains one of the sector's strongest performers. The stock has declined around 25% over the past two weeks but is still up approximately 680% over the last 12 months.

Despite the sharp rally in its share price, SK Hynix's valuation has become more attractive as profits have risen even faster. Its forward price-to-earnings multiple has fallen from 7.9 times at the end of October to 5.5 times, reflecting rapid earnings growth, according to Reuters.

The ADR offering is being underwritten by Bank of America, Citigroup, Goldman Sachs and J.P. Morgan, while SK Hynix's primary stock market listing will remain in Seoul.

The company has also disclosed that Baillie Gifford Overseas, investment funds managed by Coatue Management, and Situational Awareness Partners have each indicated interest in purchasing portions of the ADR offering, with combined commitments of up to $7 billion, Reuters reported.

Market analysts, however, believe the U.S. listing may not significantly lift SK Hynix's domestic share price, noting that South Korean companies continue to trade at relatively lower valuations because of the long-standing "Korea discount" linked to corporate governance concerns, according to Reuters.