SK Hynix is listing American Depositary Receipts (ADRs) on Nasdaq on the 10th with a $28.1 billion offering, the largest ever by a foreign company in the US market. The listing aims to attract revaluation as investors compare SK Hynix's valuation metrics to US peer Micron, which currently trades at a higher forward price-to-earnings ratio. Market participants note that Taiwan's TSMC maintains a 12.37% price gap between its US ADR and parent stock as of the 2nd, down from a December peak of 26%, raising questions about whether SK Hynix will experience similar dynamics. The Korean stock market's relatively open structure and easier ADR-parent stock conversion mechanisms differentiate it from Taiwan's more closed system.
SK Hynix Lists $28.1 Billion ADR on Nasdaq
SK Hynix is listing ADRs on Nasdaq on the 10th with a $28.1 billion (43.14 trillion won) offering. This surpasses Alibaba's $25 billion and Aramco's $25.6 billion listings, making it the largest foreign company listing in US history. The ADR will trade during regular hours and qualify for inclusion in major indices including the Nasdaq 100, positioning it to receive mechanical buying demand from exchange-traded funds (ETFs) that track these indices.
TSMC ADR Maintains 12.37% Premium Over Parent Stock
TSMC's US ADR closed at $434.16 on the 2nd, while its Taiwan parent stock closed at 2,465 Taiwan dollars the same day. With TSMC's conversion ratio of 5 parent shares to 1 ADR and the exchange rate of 31.90 Taiwan dollars per US dollar, the ADR traded at a 12.37% premium to the parent stock. According to Bloomberg data, TSMC's ADR-parent stock price gap peaked at 26% in December, then narrowed to 17% in April and 13.7% in May, but remains above 10%. ADRs typically command price premiums over parent stocks due to higher accessibility in US markets. Analysts attribute TSMC's persistent gap to Taiwan market closedness, which concentrates global passive fund flows and US retail investor buying into the US-listed ADR. Korea's market is assessed as more open than Taiwan's, with easier mutual conversion between parent stocks and ADRs through the Korea Securities Depository, and structural supply channels established through recent Samsung Securities-IBKR collaborations introducing integrated foreign investor accounts.
SK Hynix Trades at 7.42x 2026 P/E Versus Micron's 9.44x
Market participants anticipate revaluation of SK Hynix following the ADR listing. As of the closing price, SK Hynix's 2026 forward price-to-earnings ratio stands at 7.42x, compared to Micron's 9.44x, representing a significant gap. Analysts note that as Micron ranks third in the memory sector, there is no fundamental reason for SK Hynix to trade at a relative discount.
Analysts Caution on Immediate Valuation Rerating
Cautious views persist regarding immediate revaluation and spillover benefits to the domestic Korean market, considering traditional ADR price premiums. A securities firm official stated, "Given domestic supply and demand conditions, it is difficult for SK Hynix to immediately receive Micron-level valuation."
FAQ
What is the size of SK Hynix's ADR listing on the 10th?
SK Hynix is listing ADRs on Nasdaq on the 10th with a $28.1 billion (43.14 trillion won) offering, the largest foreign company listing in US history, surpassing Alibaba's $25 billion and Aramco's $25.6 billion.
How does SK Hynix's valuation compare to Micron's?
As of the closing price, SK Hynix's 2026 forward price-to-earnings ratio is 7.42x, while Micron's is 9.44x, representing a valuation gap despite SK Hynix's higher market position in the memory sector.
What is TSMC's ADR price gap compared to its parent stock?
TSMC's US ADR closed at $434.16 on the 2nd while its Taiwan parent stock closed at 2,465 Taiwan dollars, resulting in a 12.37% ADR premium after accounting for the 5-to-1 conversion ratio and exchange rate of 31.90 Taiwan dollars per US dollar.
