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SK hynix prices its mega US listing at $149 per
share
The Korea
Times - Chipmaker SK hynix Inc. said Friday it will raise about 40 trillion won
($26.5 billion) through the listing of its American depositary receipts (ADRs)
on the Nasdaq, marking what would be the world's second-largest equity offering
after SpaceX.
The offering
consists of 177.9 million ADRs priced at $149 each, according to a regulatory
filing. Each ADR represents one-tenth of a Seoul-listed common share.
The offering
is expected to raise $26.51 billion (about 40 trillion won), based on the sale
of ADRs backed by 22.5 million common shares. The fundraising target was
revised down from the previously announced 43 trillion won.
ADRs are
negotiable certificates issued by U.S. depositary banks that represent shares
in foreign companies, allowing overseas firms to access U.S. capital markets
without directly listing their common stock on a U.S. exchange.
The listing is
expected to become the largest-ever U.S. equity debut by a foreign company,
surpassing the $21.8 billion raised by Chinese technology giant Alibaba in its
New York initial public offering (IPO).
It would also
rank as the world's second-largest stock sale, trailing only SpaceX's $75
billion IPO last month.
SK hynix said
the proceeds will be used to build a new semiconductor fabrication plant and an
advanced chip packaging facility in South Korea.
The company
also plans to invest 11.9 trillion won in extreme ultraviolet (EUV) lithography
equipment scheduled for installation by the end of next year.
Industry
observers expect the global memory chip market to continue expanding despite
concerns that the sector may have reached its peak growth rate amid the
artificial intelligence (AI) boom.
The Nasdaq
debut is also expected to narrow SK hynix's valuation gap with U.S. rival
Micron Technology Inc.
Analysts note
that Taiwan Semiconductor Manufacturing Co. (TSMC) has benefited from its U.S.
listing by attracting broader global investor demand and trading at a premium
to its Taipei-listed shares.
