SK Hynix's US American Depositary Receipt (ADR) offering received over 7 times the offered shares in subscriptions as of May 8 local time closing. The demand booking closed at 4 PM local time on May 8, with global long-term investment funds and sovereign wealth funds showing strong interest. Based on SK Hynix's closing price of 2.076 million won on May 8, the estimated fundraising amounts to $24.5 billion (approximately 37.14 trillion won), making it the second-largest US listing by a foreign company after Alibaba's $25 billion offering. The oversubscription reflects global investor confidence in SK Hynix's AI semiconductor leadership despite recent stock price weakness.
SK Hynix ADR Offering Receives 7x Oversubscription on May 8
Bloomberg reported on May 8 local time that SK Hynix's ADR public offering attracted significant demand from Asia-focused global investors, including global long-term investment funds and sovereign wealth funds. The subscription closed at 4 PM on May 8. The final offering price will be confirmed in the afternoon of May 9.
With the offering price based on SK Hynix's May 8 closing price of 2.076 million won, the fundraising scale reaches $24.5 billion (approximately 37.14 trillion won). This represents the second-largest US listing by a foreign company, following Alibaba's $25 billion offering. The initial estimated fundraising was around $29 billion, but the amount decreased as the stock price fell 30.5% from its peak of 2.987 million won last month.
Cornerstone Investors Commit Up to $7 Billion
SK Hynix secured the largest-ever cornerstone investor base for the ADR listing. Cornerstone investors include Baillie Gifford and Coatue Management, as well as AI infrastructure-focused investment firm Situational Awareness. These cornerstone investors committed to purchasing up to $7 billion in shares.
Situational Awareness is a $20 billion (approximately 30.52 trillion won) fund established by Leopold Aschenbrenner, formerly of OpenAI's superalignment team, with participation from Silicon Valley figures. The firm is known for early identification of key AI rally leaders.
NASDAQ Listing Begins May 10 Under Ticker SKHYV
Thirteen global financial institutions, including Bank of America and Citi, served as underwriters for the offering. SK Hynix ADR will begin temporary trading on the NASDAQ Global Select Market under the ticker symbol SKHYV starting May 10, transitioning to regular trading on May 13.
SK Group Chairman Chey Tae-won will attend the ADR listing ceremony in New York and conduct local investor relations (IR) meetings and customer meetings. An interview with SixFive Media is scheduled for May 12.
FAQ
What was the result of SK Hynix's ADR offering on May 8?
SK Hynix's ADR offering received over 7 times the offered shares in subscriptions as of May 8 local time closing at 4 PM. Based on the May 8 closing price of 2.076 million won, the estimated fundraising amounts to $24.5 billion, making it the second-largest US listing by a foreign company after Alibaba's $25 billion.
Who are the cornerstone investors in SK Hynix's ADR listing?
Cornerstone investors include Baillie Gifford, Coatue Management, and AI infrastructure-focused firm Situational Awareness. These investors committed to purchasing up to $7 billion in shares, representing the largest cornerstone investor base for the offering.
When does SK Hynix ADR begin trading on NASDAQ?
SK Hynix ADR will begin temporary trading on NASDAQ Global Select Market under ticker SKHYV starting May 10, with regular trading commencing on May 13. The final offering price will be confirmed in the afternoon of May 9.
