Seoul: South Korean chipmaker SK hynix Inc. announced plans to raise approximately 40 trillion won (US$26.5 billion) by listing its American depositary receipts (ADRs) on the Nasdaq. This move is set to become the world's second-largest equity offering, surpassed only by SpaceX.
According to Yonhap News Agency, the offering will consist of 177.9 million ADRs priced at $149 each, as indicated in a regulatory filing. Each ADR corresponds to one-tenth of a Seoul-listed common share. The offering aims to generate $26.51 billion (about 40 trillion won), based on ADRs backed by 22.5 million common shares. This target marks a reduction from the previously announced 43 trillion won plan.
ADRs serve as negotiable certificates issued by U.S. depositary banks, representing shares in foreign companies. This mechanism enables overseas firms to tap into U.S. capital markets without directly listing their common stock on a U.S. exchange.
The SK hynix listing is anticipated to be the largest-ever U.S. equity debut by a foreign company, surpassing the $21.8 billion raised by Chinese tech giant Alibaba during its New York IPO. Globally, it will rank as the second-largest stock sale, following SpaceX's recent $75 billion IPO.
Proceeds from the listing will be allocated towards constructing a new semiconductor fabrication plant and an advanced chip packaging facility in South Korea. Additionally, the company has plans to invest 11.9 trillion won in extreme ultraviolet (EUV) lithography equipment, slated for installation by the end of next year.
Industry experts predict continued expansion in the global memory chip market, despite concerns over peak growth rates amid the AI boom. The Nasdaq listing is expected to help narrow SK hynix's valuation gap with its U.S. competitor, Micron Technology Inc.
Analysts highlight that Taiwan Semiconductor Manufacturing Co. (TSMC) has successfully leveraged its U.S. listing to attract broader global investor demand and achieve a premium trading valuation compared to its Taipei-listed shares.