SK Hynix ADR Offering Oversubscribed 7 Times; Expected to Raise 37 Trillion Won

SK Hynix saw demand for its American Depositary Receipt (ADR) offering exceed the available shares by more than seven times, Bloomberg reported on July 8 (local time).

Sources stated that the ADR offering attracted significant interest from global long-term investment funds, technology-focused funds, sovereign wealth funds, and global investors specializing in Asia.

This means that approximately 171.5 billion dollars (about 260 trillion won) in capital was submitted based on the subscription amount.

The underwriters for the offering closed the subscription period at 4:00 p.m. on July 8 (local time), and the offering price is set to be finalized during the afternoon of July 9.

If the offering price is determined based on the closing price of SK Hynix on July 8 (2,076,000 won), the total amount raised will be 24.5 billion dollars (about 37.14 trillion won).

This is expected to be the second-largest U.S. listing by a foreign company in history, following Alibaba (25 billion dollars).

The reduction in the total amount raised from the initial estimate of around 29 billion dollars is due to the decline in SK Hynix's stock price.

SK Hynix's stock price hit an all-time high of 2,987,000 won on June 25 before turning to a downward trend.

Concerns over the concentration in the semiconductor sector served as the primary reason for the decline.

The closing price on July 8 is 30.5% lower than its peak.

During the same period, the stock price of competitor Micron Technology also fell significantly.

Nevertheless, firms such as Baillie Gifford, Coatue Management, and Situational Awareness Partners had previously expressed their intent to purchase up to 7 billion dollars worth of ADRs.

Bank of America (BofA), Citi, Goldman Sachs, and JPMorgan Chase served as lead underwriters, with nine additional brokerage firms participating.

SK Hynix ADRs will begin temporary trading on the Nasdaq Global Select Market under the ticker symbol 'SKHYV' on July 10, and will transition to regular trading starting July 13.

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