South Korean chipmaker SK Hynix launches $28 billion Nasdaq listing

South Korean chipmaker SK Hynix on Monday launched United States (US) share sale to raise 43 trillion won ($28.07 billion) and drew indications of interest for up to $7 billion from major investors, as it capitalises on the global artificial intelligence (AI) boom with one of the world’s largest new share sales.

 

Baillie Gifford Overseas, investment funds managed by Coatue Management and Situational Awareness Partners have each separately indicated interest in buying up to a combined $7 billion worth of SK Hynix’s American depository receipts, or ADRs, SK Hynix said.

 

Baillie Gifford Overseas declined to comment, while Coatue Management and Situational Awareness Partners did not immediately respond to a request for comment.

 

 

The company will sell 17.79 million new shares through the ADRs on the Nasdaq; 10 ADRs will represent one common share and a Monday filing gave a reference price of 242,500 won per ADR, based on SK Hynix’s July 3 closing price in Seoul.

 

The deal comes as Asian chip companies tap strong global demand for AI-related stocks. Taiwan’s Unimicron Technology is also seeking to raise about $1.4 billion through a sale of global depositary shares, or shares listed overseas that represent its local stock.

 

SK Hynix’s shares ended Monday down 3.4 per cent at 2,343,000 won, but it is still up about 260 per cent this year. The KOSPI was down 0.5 per cent  on Monday.

 

Memory chip stocks have been volatile in recent sessions due in part to renewed investor concerns about how long the boom would last. “We are in the midst of a memory super cycle, with all three major suppliers — Samsung, SK Hynix, and Micron —  riding the AI-driven demand wave," said Di Zhou, portfolio manager at Thornburg Investment Management. Thornburg Investment owns SK Hynix's Korean ordinary shares.