SK Hynix ADR Listing Draws $171.5 Billion in Orders Ahead of $24.5 Billion Nasdaq Debut

Chey Tae-won to Attend Nasdaq Ceremony on July 10

SK Hynix Inc. will list American depositary receipts on Nasdaq on July 10, stepping up its push into global markets. The chipmaker aims to raise about $24.5 billion to prepare for intensifying competition for dominance in artificial intelligence memory.

Bloomberg and industry sources reported on July 9 that SK Hynix ADRs will begin trading on Nasdaq on July 10 after the final offering procedures are completed. By fundraising size, the listing ranks as the second-largest US listing ever by a foreign company, behind Alibaba Group Holding Ltd.

Investor demand has been strong. Bookbuilding for the ADR sale attracted demand for more than seven times the shares on offer. Orders totaled about $171.5 billion on a subscription basis. The offering price will be determined based on the July 8 closing price of 2,076,000 won. SK Hynix plans to raise $24.5 billion by issuing 18.2 million new shares, equal to 2.5% of its total shares outstanding. The recent decline in the stock trimmed the fundraising size slightly from earlier expectations.

The proceeds will be used first for construction of the first plant at SK Hynix's semiconductor cluster in Yongin and for the P&T7 advanced packaging plant in Cheongju. The company plans to expand advanced packaging capacity in advance to solidify its lead in the high-bandwidth memory market. The funds may also be used for equipment investment, including extreme ultraviolet scanners, to speed the shift to finer process technology and maximize yields.

SK Group Chairman Chey Tae-won is set to attend a Nasdaq ceremony in New York on July 10 to mark the SK Hynix ADR listing. Chey and other executives are expected to present the company's competitiveness and mid- to long-term growth strategy to major global investors. They also plan to highlight the next-generation memory roadmap and the company's technology gap as they seek a reappraisal of its value in global markets.

"SK Hynix will secure a large amount of new funding on stable terms, which should also lift its standing in the global semiconductor market," an industry official said.

Kim Chae-yeon, Hankyung.com reporter why29@hankyung.com