The leveraged ETF tracking SK Hynix shares experienced a significant decline on Friday afternoon, dropping over 24% at one point.

As of the latest update, the ETF was down 18.45%, trading at HK$88.46 with a turnover of HK$12.806 billion.

This sharp move follows news that SK Hynix has revised the expected fundraising size for its upcoming American Depositary Receipt (ADR) offering.

The company has lowered the estimated proceeds from the previously stated KRW 45.45 trillion (US$29 billion) to KRW 43.14 trillion (US$28 billion).

It is important to note that the total number of ADRs to be issued remains unchanged; this downward revision is solely a reflection of the recent decline in the company's share price and does not signal a reduction in the firm's fundraising intent.

Analysts at UBS have issued a trading recommendation, advising investors to buy the planned SK Hynix ADRs while simultaneously selling the company's shares listed on the Korean stock exchange.

The bank suggests this strategy because the ADRs are expected to trade at a potential premium compared to the domestic shares.

UBS further notes that for certain investors, such as hedge funds, these ADRs could be a more attractive investment than the Korean-listed stock due to higher holding efficiency and lower associated costs.