SK Hynix ADR offering ranks among biggest foreign U.S. debuts

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Highlights

SK Hynix’s U.S. offering is more than seven times oversubscribed.
The company is selling 177.9 million ADRs.
The deal could raise about $24.5 billion.
ADR trading is expected on Nasdaq under SKHY.

The sale of 177.9 million American depositary receipts has attracted orders from long-only funds, technology-focused investors, sovereign wealth funds, and Asia-focused global managers, Bloomberg reported. Each ADR represents one-tenth of a common share. Based on SK Hynix’s Wednesday close in Seoul at 2.076 million won, or about $1,380, the deal could raise about $24.5 billion.

Demand holds despite stock swings

The strong book comes during a volatile stretch for semiconductor shares. SK Hynix fell 5.7% in Seoul on Wednesday and is now down about 30% from a record closing high reached in late June. Even after that decline, the stock remains roughly three times higher than at the start of the year.

The offering is being led by Bank of America, Citigroup, Goldman Sachs, and JPMorgan, with nine other firms also involved. Banks were expected to stop taking orders Wednesday afternoon, with pricing planned for Thursday.

Large investors, including Baillie Gifford, Coatue Management, and Situational Awareness Partners, had indicated interest in buying as much as $7 billion of ADRs, giving the deal a strong base before final allocations.

AI memory demand drives the listing

SK Hynix has become one of the main winners of the AI infrastructure buildout because of demand for advanced memory chips used in data centers. Its U.S. listing would make the shares easier for American investors to trade at a time when AI-linked hardware names remain central to global equity markets.

The company and Samsung Electronics are also expected to increase investment in South Korea as part of a government-backed technology push worth $880 billion. That broader plan is aimed at strengthening the country’s position in AI chips and advanced semiconductor production.

A major test for the AI chip trade

The offering matters because it tests how much demand remains for AI hardware exposure after a sharp rally and recent weakness. At roughly $24.5 billion, the deal would rank among the largest U.S. debuts by a foreign company, behind only Alibaba’s $25 billion listing.

The ADRs are set to begin when-issued trading Friday on the Nasdaq Global Select Market under SKHYV, before switching to regular-way trading under SKHY on July 13. If demand holds through pricing, SK Hynix will show that investors are still willing to pay for the AI memory story, even after a 30% slide from its peak.

Earlier, we reported that SK Hynix seeks $28 billion in Nasdaq listing.

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