SK Hynix expands investor demand ahead of U.S. listing

As SK hynix's listing on the U.S. Nasdaq nears, interest from overseas institutional investors is growing. The Financial Times reported on the 6th that three parties, including local hedge funds and asset managers, have expressed their intention to buy up to $7 billion worth of American depositary shares (ADSs) issued by SK hynix. SK hynix plans to conduct a roadshow for global institutional investors from the 6th to the 9th, determine the offering price on the 10th, and then begin trading on Nasdaq. This listing will be the largest ever among U.S. listings by a foreign company, and the company will offer new shares equivalent to about 2.5% of its total issued shares in the form of ADRs. The funds raised are planned to be used for investment in domestic production facilities. Major uses include the first fab in the Yongin semiconductor cluster, a cuttingedge packaging plant in Cheongju, and the purchase of extreme ultraviolet equipment from ASML. However, dilution of existing shareholders' stakes due to the issuance of new shares, fluctuations in the memory market, and competition from rivals are being cited as variables going forward.