SK Hynix seeks $28 billion in Nasdaq listing

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SK Hynix launches U.S listing

Highlights

SK Hynix plans to raise about $28 billion through a U.S. listing.
The company will sell 17.79 million new shares via Nasdaq ADRs.
Its Seoul-listed stock is up about 273% this year.
Proceeds will fund chip plants and advanced manufacturing equipment.

Nasdaq listing opens access to US investors

SK Hynix will sell 17.79 million new shares through the depositary receipt listing, with 10 ADRs representing one common share. The price range is expected to be revealed Monday and will be based on the company’s Seoul-listed share price, according to Reuters.

The company’s stock fell about 4% in Seoul on Monday to 2,327,000 won, while South Korea’s KOSPI index declined 2.2%. Even after the drop, SK Hynix shares remain up about 273% this year, reflecting the strength of investor demand for companies tied to AI data centers and high-performance computing.

The final price for the New York listing is due to be set Thursday, with trading expected to begin Friday. SK Hynix management is scheduled to meet global investors on a roadshow this week.

AI memory demand drives expansion

SK Hynix has become one of the biggest beneficiaries of the AI boom because of its high-bandwidth memory chips, which are used in advanced AI systems by customers including Nvidia and Google. The company has outpaced major rivals Samsung Electronics and Micron in a market where supply has remained tight and pricing power has improved.

Proceeds from the ADR sale will be used to build chip factories in South Korea and buy chipmaking equipment, including extreme ultraviolet scanners from ASML. The fundraising comes as South Korea pushes a broader national strategy around semiconductors and AI, including a $576 billion chip investment program in the country’s southwest. SK Hynix and Samsung are expected to anchor that initiative.

The offering could rank as the second-largest share sale globally, behind SpaceX’s reported $85.7 billion initial public offering last month and ahead of Saudi Aramco’s $25.6 billion IPO in 2019.

A global test for the memory cycle

The listing gives SK Hynix a way to convert AI enthusiasm into capital while expanding its investor base beyond South Korea. A Nasdaq presence could also reduce the valuation gap with U.S. rival Micron and make the stock easier to include in indexes and passive investment products.

Still, the deal arrives during a volatile period for memory-chip stocks. Some investors worry that rising memory prices could eventually pressure spending on AI infrastructure, smartphones, and PCs. For now, SK Hynix is betting that demand for high-bandwidth memory remains strong enough to support both its share sale and its next phase of expansion.

As we previously reported, Samsung and SK Hynix plan massive AI chip investments in South Korea.

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