SK Hynix's Wall Street Debut Set to be Biggest by Foreign Company

Dow Jones
Jul 10
 
 

South Korean chip-making giant SK Hynix's debut on Wall Street is set to be the largest share sale by a non-U.S. company after it raised $26.51 billion issuing American depositary receipts.

When its ADRs list on Friday, it will top the $25 billion raised by Chinese e-commerce giant Alibaba in 2014. It would also rank as the second biggest U.S. stock sale on record after SpaceX's $75 billion offering last month.

The company in a Korean exchange filing Thursday said it plans to issue 177.9 million ADRs priced at $149 each, with 10 ADRs representing one common share.

The cash raised will go toward expanding its chip-making facilities and purchasing advanced equipment, according to the filing. The company's Seoul-listed stock has already more than tripled this year, boosted by insatiable global demand for chips related to the artificial intelligence boom.

Ten ADRs would cost $1,490, a premium of about 3% compared with Hynix's shares in Seoul, which ended Friday at 2,180,000 won, equivalent to $1,450.

High demand for Hynix's ADRs could send it higher when trade begins in New York, and they could initially trade at a 12%-17% premium to Seoul-listed shares before that premium narrows to about 10% in coming months, said Douglas Kim at Douglas Research Advisory on Smartkarma.

That premium is justified because some large institutional investors cannot easily buy South Korea-listed common shares and are required by their investment mandates to hold only U.S.-listed securities, Kim added.

Analysts say the U.S. listing will help SK Hynix narrow its valuation gap with U.S. rival Micron Technology and pave the way for the South Korean memory-chip maker to join the Philadelphia Semiconductor Index, a U.S. chip benchmark tracked by global passive funds. This could prompt a re-rating of the stock.

 

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

 

(END) Dow Jones Newswires

July 10, 2026 03:32 ET (07:32 GMT)

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