SK hynix raises US$26.5 billion, setting a new record for overseas companies’ U.S. listings
[Dahe Finance Cube News] On July 9, local time, South Korean memory chip manufacturer SK Hynix completed the issuance of American depositary receipts, raising a total of US$26.5 billion, becoming the largest U.S. initial public offering by a foreign company in history. Its U.S. depositary receipts (ADRs) plan to be officially listed on the Nasdaq Global Select Market on Friday. SK Hynix is issuing 177.9 million American depositary receipts, each priced at US$149; one American depositary receipt corresponds to one-tenth of the common shares listed on the Seoul Exchange.
[Dahe Finance Cube News] On July 9, local time, South Korean memory chip manufacturer SK Hynix completed the issuance of American depositary receipts, raising a total of US$26.5 billion, becoming the largest U.S. initial public offering by a foreign company in history. Its U.S. depositary receipts (ADRs) plan to be officially listed on the Nasdaq Global Select Market on Friday. SK Hynix is issuing 177.9 million American depositary receipts, each priced at US$149; one American depositary receipt corresponds to one-tenth of the common shares listed on the Seoul Exchange. Data shows that the total amount raised of US$26.5 billion exceeded the scale of Alibaba Group's US listing and ranked third largest IPO in global history. The prospectus documents disclosed that institutions including Peregrine, Coatue Management and Situational Awareness Partners have expressed investment intentions for up to US$7 billion in American depositary receipts (ADRs). According to calculations, the issuance is priced at a premium of approximately 3% to the closing price of the company's Korean common shares on Thursday. SK Hynix plans to use the funds raised to expand production capacity to meet the continued growth in demand for high-bandwidth memory chips for AI servers. UBS recommended in a report on Tuesday that investors should buy SK Hynix's U.S. stock ADRs and actively sell the memory chip manufacturing giant's shares traded on the South Korean stock market, as these newly issued securities may trade at a premium. (