▲ SK Hynix
SK Hynix announced on July 10 (local time) that the offering price for its American Depositary Receipt (ADR) initial public offering (IPO) has been finalized at $149 per share.
The offering consists of 177.9 million ADRs.
Through this offering, SK Hynix will raise a total of $26.507 billion (approximately 40 trillion won).
One ADR represents one-tenth of a common share in Korea.
Based on this, the ADR offering price is approximately 2.9% higher than the closing price of SK Hynix common shares on the Korean stock market the previous day, which was 2,186,000 won (approximately $1,445).
While large-scale IPOs are generally priced at a discount to the existing stock price to secure investors, SK Hynix succeeded in "premium pricing," offering shares at a higher price.
An official from SK Hynix explained that this is the only instance of premium pricing in the history of U.S. IPOs.
This can be interpreted as global investors placing a high value on SK Hynix's corporate value and growth potential.
This ADR listing is one of the largest transactions in the U.S. capital market.
The offering amount of $26.5 billion surpasses the $25 billion raised by China's Alibaba in 2014, marking the largest U.S. IPO by a foreign company.
In particular, it also recorded the largest scale among offerings conducted via the ADR method.
Among all U.S. IPOs, it is the second-largest, following SpaceX (approximately $85.7 billion).
It is reported that demand for the SK Hynix ADR offering exceeded seven times the amount of shares offered.
Previously, Bloomberg reported that total demand reached $200 billion (approximately 301 trillion won) and that about half of the issued shares were allocated to the top 10 accounts.
In particular, it was reported that there was a massive influx of demand from large institutional investors, including global long-term investment funds, technology-specialized funds, sovereign wealth funds, and global investors specializing in Asia.
Conditional trading for SK Hynix will begin on July 10 (U.S. Eastern Time) under the ticker symbol "SKHYV."
Regular trading under the ticker "SKHY" will be available starting July 13.
The offering process is scheduled to be completed on July 14.
The offering was led by underwriters Bank of America (BofA), Citigroup, Goldman Sachs, and JPMorgan.
SK Hynix is scheduled to ring the opening bell for its ADR at the Nasdaq MarketSite in New York's Times Square on the morning of July 10, with key executives including Chairman Chey Tae-won and CEO Kwak Noh-jung in attendance.
(Photo: Yonhap News)
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