SK Hynix Launches $28 Billion US Listing — One of the Largest Share Sales in History
SEOUL/NEW YORK — South Korean chipmaker SK Hynix on Monday launched a U.S. share sale to raise 43 trillion won ($28.07 billion), drawing indications of interest for up to $7 billion from major investors in what is shaping up to be one of the world's largest share sales.
The Scale
The deal is expected to be the second-biggest share sale in history, surpassed only by SpaceX's record $85.7 billion initial public offering last month. It dwarfs Saudi Aramco's $25.6 billion IPO in 2019 and Alibaba's similar-sized offering in 2014. SK Hynix will sell 17.79 million new shares through American Depositary Receipts on the Nasdaq, with 10 ADRs representing one common share.
Who's Buying
Baillie Gifford Overseas, investment funds managed by Coatue Management, and Situational Awareness Partners have each indicated interest in buying up to a combined $7 billion worth of ADRs.
Why Now
SK Hynix has been among the world's largest beneficiaries of the AI boom. The company is a key supplier of high-bandwidth memory (HBM) chips used in AI systems by customers including Nvidia and Google. Its stock is up about 260% this year. The funds raised will be used to build chip factories in South Korea and purchase advanced chipmaking equipment, including extreme ultraviolet scanners from Dutch manufacturer ASML.
The Memory Super Cycle
"We are in the midst of a memory super cycle, with all three major suppliers — Samsung, SK Hynix, and Micron — riding the AI-driven demand wave," said Di Zhou, portfolio manager at Thornburg Investment Management.
The listing removes what analysts call an "accessibility discount" — U.S. institutions and retail investors who previously found it difficult to buy SK Hynix shares on the Korean exchange can now trade them directly on the Nasdaq. The stock is expected to join the Philadelphia SE Semiconductor Index, paving the way for a surge in passive investments.
The final listing price is due to be set on Thursday, with trading starting Friday.
