Foreign Media Say SK Hynix ADR Sale Drew Orders Several Times the Shares on Offer
Summary
- SK Hynix’s ADR offering was reported to be oversubscribed by several times the planned number of shares during bookbuilding.
- Large institutions with long-term investment mandates and tech-focused investors were said to have expressed interest in buying up to $7 billion of the sale.
- The offering size could shrink from $29 billion to around $28 billion as volatility in global semiconductor stocks increases and SK Hynix shares fall 17%.
Forecast Trend Report by Period
SK Hynix’s American depositary receipt offering drew orders several times the planned number of shares during bookbuilding, foreign media reported.
Bloomberg and Reuters reported on July 7 that large institutions with long-term investment mandates and tech-focused investors participated heavily in the sale. They were said to have expressed interest in buying as much as $7 billion. About 1,000 institutional investors joined a roadshow held on July 6.
Bookbuilding will continue through July 8, and the offer price is scheduled to be set on July 9. Trading on the Nasdaq is due to begin on July 10.
The sale is proceeding amid increased volatility in global semiconductor stocks, which could result in an offer price below earlier expectations. SK Hynix shares have fallen 17% this month. The stock is currently trading about 9% below the ADR reference price listed in filings with the US Securities and Exchange Commission.
As a result, the offering size, which had been estimated at $29 billion at the end of last month, could shrink to around $28 billion.
Han Gyeong-woo, Hankyung.com reporter case@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.