SK Hynix Inc’s planned $28 billion U.S. listing has attracted strong demand from investors, according to a Bloomberg News report on Wednesday.
The offering has reportedly drawn interest several times larger than the number of shares available. This highlights strong investor appetite for the AI memory chip leader, even as the company prepares one of the largest listings of its kind.
SK Hynix Shares Fall in Seoul
SK Hynix shares fell nearly 3% in Seoul trading.
However, the stock still performed better than the broader KOSPI index, which dropped more than 5% during the session.
Institutional Investors Show Strong Interest
Bloomberg reported that demand has been strong among global long-only funds and technology-focused investors.
The report, citing people familiar with the matter, said the offering is expected to price on Thursday.
Around 1,000 institutional investors reportedly joined SK Hynix’s management roadshow earlier this week.
ADR Offering Could Become Record US Listing
SK Hynix began marketing 177.9 million American depositary receipts, or ADRs, on Monday.
Based on the company’s closing share price in Seoul last Friday, the offering is valued at about $28 billion.
That would put SK Hynix on track to become the largest-ever U.S. listing by a foreign company.
AI Chip Demand Fuels Stock Rally
Each SK Hynix ADR represents one-tenth of a common share.
The sale represents around 2.5% of the company’s market value.
SK Hynix’s market value has more than tripled this year. The rally has been driven by strong demand for high-bandwidth memory chips used in artificial intelligence servers.
Nasdaq Trading Set to Begin
The ADRs are expected to price on Thursday.
Trading is scheduled to begin on the Nasdaq Global Select Market on Friday.
According to the report, limits on converting Seoul-listed shares into ADRs could reduce arbitrage opportunities. This may allow the U.S.-listed shares to trade at a premium.
Major Banks Lead the Offering
The SK Hynix listing is being led by Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase.
Strong demand from institutional investors shows how closely markets are watching companies linked to the artificial intelligence chip boom.
