SK Hynix's American depositary receipt (ADR) offering has been met with overwhelming demand, with global investors placing orders for more than seven times the available shares, according to reports from Bloomberg and Reuters. The strong interest underscores confidence in the South Korean memory chip giant's central role in the AI hardware supply chain. SK Hynix stock rose 5.3% in Seoul on Thursday, closing at 2.186 million won (approximately $1,445 per share), as traders positioned themselves ahead of the expected Nasdaq listing on Friday under the ticker SKHY.
The ADR issuance comprises 177.9 million new ADRs, equivalent to 17.79 million common shares or roughly 2.5% of the company’s market capitalization. Each ADR represents one-tenth of a common share, implying an ADR price of around $144.50 if priced in line with Thursday’s close. At that level, the deal could raise approximately $25.71 billion, making it the largest ADR offering ever—narrowly surpassing Alibaba’s $25 billion debut in 2014—and the second-largest equity offering of all time, trailing only SpaceX.
Demand was broad-based. Around 1,000 institutional investors attended the management roadshow, including long-only funds and tech-focused investors. US-based investors submitted sizeable orders, with several ranging from $200 million to over $1 billion. Major backers such as Baillie Gifford Overseas Limited, funds managed by Coatue Management, and Situational Awareness Partners (a hedge fund run by a former OpenAI researcher) have indicated interest in purchasing up to a combined $7 billion worth of the ADRs. The order book’s strength has prompted some London-based hedge fund managers to speculate that no discount may be offered on the ADR price.
SK Hynix has emerged as one of the biggest beneficiaries of the global AI infrastructure boom, with its market value more than tripling this year as demand for high-bandwidth memory (HBM) chips surged. The company is Nvidia’s leading supplier of HBM chips. Proceeds from the ADR offering will be used to expand semiconductor manufacturing facilities in South Korea and purchase advanced chipmaking equipment, including ASML's extreme ultraviolet (EUV) lithography systems, to keep pace with AI-driven demand that continues to outpace supply.
Analysts see the Nasdaq listing as a potential valuation catalyst. Meritz Securities expects the ADR to narrow the valuation gap with US rival Micron Technology and could pave the way for inclusion in the Philadelphia Semiconductor Index, triggering passive fund inflows. HSBC recently raised its valuation multiple for SK Hynix, citing improved shareholder initiatives and better investor accessibility. Despite a 25% pullback over the past two weeks, the stock remains up about 680% year-over-year and trades at just 5.5 times forward earnings, reflecting consistently upward revisions in profit estimates.
