SK Hynix's US stock depositary receipt (ADR) order book closed on July 9; according to Bloomberg, the oversubscription rate has exceeded 7 times. The current ADR issuance volume is 177.9 million shares, and the ADR is expected to begin conditional trading on the Nasdaq Global Select Market on Friday. After transitioning to regular trading on July 13, the stock ticker will change to SKHY.
ADR Oversubscription Exceeds 7 Times: Long-term Global Funds, Sovereign Funds, and Tech Industry Funds Actively Participate
According to Bloomberg, this round of SK Hynix ADR subscriptions attracted long-term global funds, tech-focused funds, sovereign funds, and Asia-oriented global investors; the buying interest spans various types of institutional capital, not just a single group, with an oversubscription rate exceeding 7 times.
This enthusiasm contrasts sharply with SK Hynix's Korean stock, which has fallen nearly 30% from its historical high at the end of June, indicating a divergence between institutional investors' long-term outlook on HBM (high-bandwidth memory) and AI computing cycles, and the current short-term stock price momentum.
Issuance Structure: 177.9 Million Shares of ADR, Each Corresponding to One-Tenth of a Common Share
According to reports, the key technical parameters of SK Hynix's ADR are as follows:
Number of Shares Issued: 177.9 million ADR shares
ADR Conversion Ratio: 1 ADR share equals 1/10 of a common share
Estimated based on Seoul's Wednesday closing price (2.076 million KRW, approximately $1,380): fundraising scale of about $245 billion
Previous market expectations: up to nearly $290 billion; actual pricing will be finalized on Thursday
Historical scale positioning: the second-largest foreign company listing in the US (Alibaba in 2014: $25 billion)
Underwriters Led by Bank of America, Citigroup, Goldman Sachs, and J.P. Morgan
According to reports, SK Hynix's ADR underwriting syndicate is led by Bank of America, Citigroup, Goldman Sachs, and J.P. Morgan, with nine other institutions participating in distribution. The scale of this lineup underscores the significance of this transaction.
Looking ahead, the funds raised by SK Hynix are expected to ultimately flow back into wafer plant construction and capacity expansion, as part of South Korea's government-led $880 billion plan; the goal is to keep memory and advanced process capacity within Korea, with SK Hynix and Samsung Electronics both within the scope of the plan.
Frequently Asked Questions
What is the oversubscription rate for SK Hynix ADR, and what is the expected fundraising scale?
According to Bloomberg, the order book for SK Hynix ADR was oversubscribed by more than 7 times before closing; based on Seoul's Wednesday closing price, Bloomberg estimates the fundraising scale at about $245 billion. The actual amount will be confirmed after the official pricing on Thursday (July 10).
When will SK Hynix ADR begin official trading on Nasdaq?
The report states that the ADR is expected to start conditional trading on the Nasdaq Global Select Market on Friday, with regular trading beginning on July 13. At that time, the stock ticker will change to SKHY.
What is the historical scale of this SK Hynix ADR?
Based on Bloomberg's estimate of approximately $245 billion, this ADR issuance will be the second-largest foreign company listing in the US, after Alibaba's $25 billion IPO in 2014, and also the largest listing of a South Korean company in the US.
