SK Hynix set its American Depositary Receipt (ADR) offering price at $149 per share, raising $26.507 billion (approximately 40 trillion won) ahead of its NASDAQ listing. Conditional trading begins tonight under the temporary ticker symbol SKHYV, with regular trading commencing on the 13th under SKHY. The listing has already impacted the Seoul foreign exchange market, with the USD/KRW exchange rate falling below the 1,500 won level for two consecutive trading sessions on the 8th and 9th — the first time since May 29 — driven by ADR-related forward FX selling and capital inflow expectations.
SK Hynix ADR Sets $149 Offering Price for NASDAQ Debut
According to the financial investment industry on the 10th, SK Hynix confirmed the ADR offering price at $149 per share. The capital raised totals $26.507 billion, equivalent to approximately 40 trillion won in Korean currency. SK Hynix ADR begins conditional trading tonight under the temporary ticker code SKHYV. From the 13th, regular trading commences under the ticker SKHY.
USD/KRW Exchange Rate Falls Below 1,500 Won on ADR-Related Selling
The Seoul foreign exchange market has already reflected ADR-related expectations in the exchange rate. On the 8th, the USD/KRW exchange rate plunged to the 1,498 won range, driven by SK Hynix ADR-related forward FX selling, volumes estimated to be foreign exchange authority smoothing operations, and long-stop orders. This marked the first time the USD/KRW rate entered the 1,400 won range since May 29.
On the 9th, the USD/KRW rate temporarily fell to 1,496.80 won, marking two consecutive days below the 1,500 won level. However, consistent buying interest at levels below 1,500 won pushed the rate back to the mid-to-late 1,500 won range.
Market Participants Assess ADR Impact Already Priced Into Exchange Rate
Market participants agree that ADR-related supply could act as a downward pressure factor on the USD/KRW rate, while leaving open the possibility that a significant portion has already been reflected in the price. Some participants note that whether the entire capital raised immediately translates into spot FX selling volume remains to be seen.
Part of the currency conversion is estimated to have already occurred through forward FX selling before the listing, and the supply impact may vary depending on the actual conversion timing and scale after the offering proceeds are paid in.
An FX dealer at a bank stated, "We anticipated that ADR-related volumes entering in July could lead to won strength, but it seems the market has already priced in a significant portion at current levels." The dealer added, "If the exchange rate falls further to the late 1,400 won range, exporters who have delayed dollar selling may also release negotiation orders."
The dealer continued, "While the USD/KRW rate maintained an upward trend for a year from the second half of last year, it has fallen sharply this month from the 1,560 won range to around the 1,500 won level." The dealer added, "Although the Korea-US interest rate differential issue remains, we should leave open the possibility of further short-term declines."
An FX dealer at a securities firm also projected, "Foreign stock selling has recently decreased, and SK Hynix-related volumes are estimated to continue flowing in, so the upper limit may be heavy."
However, participants generally view it as difficult for the USD/KRW exchange rate to deviate significantly from the 1,500 won level in the short term. Having confirmed once more that the lower bound held below the 1,500 won level the previous day, the analysis suggests the USD/KRW rate will move around the 1,500 won level for the time being.
Market participants are monitoring how much additional currency conversion demand flows in after the SK Hynix ADR listing and whether foreign net stock buying continues.
FAQ
What price did SK Hynix set for its ADR offering on NASDAQ?
SK Hynix confirmed the ADR offering price at $149 per share, raising $26.507 billion (approximately 40 trillion won). Conditional trading begins tonight under ticker SKHYV, with regular trading starting on the 13th under ticker SKHY.
Why did the USD/KRW exchange rate fall below 1,500 won?
On the 8th, the USD/KRW rate fell to the 1,498 won range due to SK Hynix ADR-related forward FX selling, volumes estimated to be foreign exchange authority smoothing operations, and long-stop orders. On the 9th, the rate temporarily touched 1,496.80 won, marking two consecutive days below 1,500 won for the first time since May 29.
