South Korean memory chipmaker SK Hynix is reportedly preparing to submit documents for an American Depositary Receipt offering to the country’s financial regulator.
According to the Korea Economic Daily, the planned filing represents another important step toward listing SK Hynix shares in the United States.
SK Hynix Targets a Wider Global Investor Base
The potential U.S. listing would advance plans first announced earlier this year. SK Hynix aims to expand its international investor base and make its shares more accessible to investors outside South Korea.
The move comes as global demand for artificial intelligence semiconductor stocks remains strong. Chipmakers connected to the AI industry have attracted significant investor attention due to rising demand for advanced computing infrastructure.
ADR Offering Could Raise Up to $26 Billion
Industry estimates cited by the Korea Economic Daily suggest that the SK Hynix ADR offering could raise as much as 40 trillion won, equivalent to approximately $26 billion.
The estimate is based on the company’s recent market valuation. However, the final size of the transaction has not yet been confirmed.
Previous reports indicated that the offering could raise up to $10 billion. The latest estimates therefore suggest that the potential deal could be considerably larger than initially expected.
How the SK Hynix ADR Structure Could Work
According to the report, SK Hynix plans to issue new shares in South Korea before depositing them with the Korea Securities Depository.
These deposited shares would then serve as the underlying securities for the American Depositary Receipts traded in the United States.
An ADR structure allows American investors to gain exposure to shares of a foreign company without purchasing the original stock directly on an overseas exchange.
U.S. Trading Could Begin as Early as July
The South Korean financial regulator could complete its review of the filing by July 3.
If the regulatory process proceeds as expected, trading in the SK Hynix ADRs could begin as early as the following month. However, the timetable may change depending on regulatory approval and final market conditions.
AI Boom Strengthens SK Hynix Growth
SK Hynix first revealed its plans for a potential U.S. listing in March.
The company is a major producer of high-bandwidth memory chips, which are essential components in artificial intelligence processors. It is also a key supplier to Nvidia, one of the leading companies behind the global AI computing boom.
Strong demand for AI processors and advanced memory products has made SK Hynix one of the semiconductor industry’s biggest beneficiaries of the rapid expansion in artificial intelligence investment.
