The offering price for SK Hynix's American Depositary Receipts (ADR) has been set at $149 per share, ahead of its upcoming listing on the NASDAQ, as of July 10 local time.
The total capital raised through these certificates, which allow SK Hynix shares to be traded on the U.S. market, marks the largest offering by a foreign company in U.S. stock market history.
Even when including U.S. companies, it ranks second, following the space company SpaceX, founded by Elon Musk, which went public on June 12.
SK Hynix announced through its English-language website that the ADR offering price had been finalized at $149 per share.
The offering consists of 177.9 million ADRs, with one ADR representing one-tenth of a common share.
In terms of common shares, this is equivalent to an offering of 17.79 million shares.
The finalized offering price is approximately 2.9% higher than the price converted from the closing price of 2,186,000 won on the Korean stock market the previous day.
While large-scale initial public offerings typically offer shares at a discount to the existing stock price to secure investors, SK Hynix has opted for premium pricing, setting the offering at a higher price.
With the ADR offering price set at $149, SK Hynix is set to raise approximately $26.5 billion, or 40.007 trillion won.
This figure surpasses the $25 billion raised by China's Alibaba Group when it listed on the New York Stock Exchange in September 2014.
Investor response has been enthusiastic.
According to Bloomberg, as of yesterday, the demand forecast for SK Hynix ADRs saw subscriptions exceeding seven times the offering volume, with interest pouring in from global long-term investment funds, technology-focused funds, sovereign wealth funds, and global investors specializing in Asia.
Renowned asset management firms, including Baillie Gifford, Coatue Management, and Situational Awareness, are also reported to have expressed interest in investments totaling up to $7 billion.
Reported by Kim Jiuk | Video by Seo Byeong-uk | Graphics by Yang Hye-min | Produced by SBS Digital News
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