South Korean reminiscence chipmaker SK Hynix has filed a registration assertion with the US Securities and Alternate Fee for a Nasdaq itemizing that might increase as a lot as $29.4 billion.
The corporate plans to checklist its American Depositary Shares on the Nasdaq International Choose Market underneath the ticker SKHY. The providing may embrace as much as 17.79 million newly issued frequent shares, representing about 2.5% of its present share depend. Ten ADSs will characterize one frequent share.
On the most measurement, the providing would increase about 45.45 trillion gained. The preliminary valuation implies a value close to $166 per ADS, though the ultimate value will likely be decided after discussions with underwriters and the completion of the bookbuilding course of.
SK Hynix plans to start bookbuilding on July 6, set the ultimate value on July 9 and begin buying and selling on Nasdaq on July 10. BofA Securities, Citigroup, Goldman Sachs and JPMorgan are managing the providing.
The transaction just isn’t a standard preliminary public providing as a result of SK Hynix is already publicly traded in South Korea. As an alternative, the ADS providing will give US traders extra direct entry to the corporate and permit it to boost capital via a second itemizing.
SK Hynix mentioned it can use the proceeds for normal company functions and capital expenditures. Deliberate investments embrace new semiconductor factories in South Korea and superior chipmaking gear akin to excessive ultraviolet lithography machines produced by ASML.
The corporate has emerged as one of many largest beneficiaries of the AI infrastructure increase. SK Hynix is a serious provider of excessive bandwidth reminiscence chips utilized in AI techniques developed by prospects together with Nvidia and Google. Its shares have quadrupled this yr as demand for superior reminiscence has tightened international provides.
The Nasdaq itemizing may additionally assist slender the corporate’s valuation hole with US rival Micron. HSBC estimates that improved entry for international traders may raise SK Hynix’s value to guide ratio to three.4 from 2.8, representing a rise of roughly 20%.
The submitting comes as South Korea accelerates a broader growth of its semiconductor business. Samsung Electronics and SK Hynix plan to construct 4 new fabrication crops underneath an 800 trillion gained chip manufacturing undertaking meant to double the nation’s reminiscence manufacturing capability over the subsequent 5 years.
