Seoul: South Korean chip giant SK hynix Inc. announced its plan to raise up to 43.14 trillion won (US$28.14 billion) through a stock offering associated with the listing of its American depositary receipts (ADRs) on the Nasdaq market.

According to Yonhap News Agency, this revised amount marks a reduction from the previously planned 45.45 trillion won. The adjustment reflects the closing price of 2.42 million won on the Korea Composite Stock Price Index (KOSPI) as of Friday, which is lower than the 2.55 million won recorded on June 23.

In a regulatory briefing, SK hynix detailed its intention to issue up to 17.79 million new shares, representing approximately 2.5 percent of its total shares, for the ADR listing set for Friday. The subscription and payment dates are scheduled for July 14, with the new depository receipts expected to be listed on July 29. The final amount will be confirmed following the completion of book building, as stated by the chipmaker.

ADRs are securities available in the U.S. stock market that enable investors to trade shares of foreign companies, allowing these companies to attract U.S.-based investors without needing a full listing of common shares.

As the world's second-largest memory chipmaker, SK hynix plans to allocate the proceeds from the stock sale to build a chip factory and an advanced packaging fab in South Korea. Additionally, the funds will be used to acquire chipmaking equipment, including extreme ultraviolet lithography equipment.

This strategic move follows SK hynix's announcement in March regarding its intention to list ADRs on the U.S. stock market. The chipmaker aims to enhance access to global investors, particularly as it advances its efforts in the field of artificial intelligence.