SK Hynix ADR Plummets 9.3%, Hovering Slightly Above IPO Price

SK Hynix's American Depositary Receipts (ADRs) plunged more than 9% on July 13 (local time), marking the second day of official trading.
On the New York Stock Exchange that day, SK Hynix ADRs closed at 152.35 dollars, down 9.32% from the previous trading session.
This decline wiped out a significant portion of the 13.1% surge recorded on July 10, the first day of listing, bringing the price down to a level slightly above the IPO price of 149 dollars.
The sharp drop in the company's primary shares in the Korean market appears to be impacting the ADRs listed on the U.S. stock market.
Earlier in the Korean market, SK Hynix's primary shares closed at 1,845,000 won, down 15.37% from the previous trading session.
This downturn is interpreted as the result of a combination of valuation burdens and an adjustment of expectations for the memory semiconductor sector as a whole, which had previously surged on the back of the AI boom.
In the New York stock market, shares of peer memory companies also fell across the board, including Micron Technology (-4.4%) and Western Digital (-4.6%).
Hebe Chen, a market analyst at global financial brokerage firm Vantage Global Prime, stated, "SK Hynix is experiencing the aftereffects of a period where the dopamine effect from the surge has faded and expectations are being coldly reset."
※ Please note: This article was translated by AI and may contain errors.