Bloomberg Says SK Hynix Weighs 0.5% Fee for ADR Listing
Summary
- Bloomberg reported that SK Hynix is considering paying about 0.5% of the proceeds in fees ahead of its American depositary receipt, or ADR, listing.
- The report said the offering could raise about $26.5 billion based on the company's recent market capitalization, and that total fees would come to $130 million if a 0.5% rate is applied.
- People familiar with the matter told Bloomberg that discussions are under way over fees and incentive compensation, and that despite a lower fee rate than SpaceX, the listing could still become one of this year's richest deals for underwriters in Asia and a landmark share sale on the scale of Aramco.
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Bloomberg reported on July 4 that SK Hynix is considering paying underwriters about 0.5% of the proceeds from its planned American depositary receipt, or ADR, listing.
Based on SK Hynix's recent market capitalization, the offering could raise about $26.5 billion, the report said. At a 0.5% fee rate, total underwriting fees would come to about $130 million.
People familiar with the matter told Bloomberg that SK Hynix is discussing fees and incentive compensation, and that the terms could still change. The 0.5% fee would be lower than the 0.67% charged in SpaceX's recent record-sized initial public offering.
Still, the size of the fundraising could make it one of the most lucrative Asia-related deals for underwriters this year, Bloomberg said. The listing could also rival Saudi Aramco's 2019 initial public offering in scale, it added.
Lee Su, Hankyung.com reporter 2su@hankyung.com
Korea Economic Daily
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