SEOUL: South Korea’s SK Hynix priced its American Depositary Receipts at US$149 on Thursday (Jul 9) raising about US$26.5 billion, a US regulatory filing showed, highlighting strong investor appetite for a pivotal chipmaker in the AI supply chain.
The share sale comes as the company leverages its position as the leading supplier of high-bandwidth memory chips, a critical component for the advanced processors powering global artificial intelligence systems.
SK Hynix priced the listing at a 2.7 per cent premium over its average share price in the last three trading days, the company said in a filing on Friday to the Korea stock exchange.
Chip stocks have lost some momentum in recent weeks after a stellar run, partly due to investor concerns about slower AI spending.
SK Hynix shares were trading up 2.8 per cent in Seoul at the open on Friday, lagging the wider market’s 4.5 per cent gain.
Demand for SK Hynix’s US share sale was more than seven times available shares, a person familiar with the matter said on Thursday.
SK Hynix declined to comment on the pricing and the demand for shares. The person declined to be identified as details of the share sale were confidential.
The US shares will start trading on Friday under the ticker symbol “SKHY” on Nasdaq.
The company had earlier referenced a per share price of 242,500 won (US$160.80) per ADR, based on the Jul 3 closing price in Seoul.
On Thursday, the Korean shares closed at 2,186,000 won and 10 ADRs represent one common share.
The offering from the South Korean chipmaker will finance new factories and equipment to meet surging AI chip demand.
Read the full article here
