SK Hynix moves closer to US ADR, chip maker files financial statement in Korea, report says

SK Hynix, a South Korean semiconductor company, is expected to submit a statement to the country’s financial regulator regarding a plan to offer American Depositary Receipts (ADRs), according to the Korea Economic Daily.

As per a report from Bloomberg, the company first disclosed its ADR listing plans in March, stating that it intends to conduct the offering in New York in the second half of the year. The transaction is expected to rank among the largest overseas equity raises by a South Korean company.

The planned listing is aimed at bringing the chipmaker closer to the US market, following a historic rally that has propelled the Korean stock market to its strongest global performance. SK Hynix has said the listing would broaden its global investor base and improve access to capital markets. Analysts also expect the move to help narrow valuation gaps with US peers.

Previous reports suggested the ADR sale could reach up to $10 billion, although the final size has not yet been confirmed. Industry estimates cited by the Korea Economic Daily suggest the offering could be as large as 40 trillion won (approximately $26 billion), based on the company’s market value following its recent rally. If realized, it would be comparable to Alibaba’s 2024 offering, which was the largest at the time.

SK Hynix is one of the world’s largest semiconductor manufacturers and, alongside Samsung and Micron, is part of the “Big Three” memory chip producers. The company has benefited significantly from the AI boom, driven by its leadership in high-bandwidth memory (HBM) chips used in NVIDIA’s AI accelerators, with its stock price rising more than 300% this year.

According to the Korea Economic Daily, the company plans to issue shares in South Korea and deposit them in the country’s central securities depository. These shares would serve as the underlying securities for the ADRs. The South Korean financial watchdog’s review could be completed by July 3, raising expectations that trading could begin as early as next month.

SK Hynix had first disclosed its ADR listing plans in March, reiterating that the offering would take place in New York in the second half of the year. The company has said the listing is expected to be among the largest overseas equity raises by a South Korean company.

The company has not immediately commented to Bloomberg.

Also Read: South Korean stocks at risk of 'swift downside reversal' as SK Hynix, Samsung dominate: BTIG

Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America are reported to be the arrangers for the ADR listing.

Chief Executive Officer Kwak Noh Jung told shareholders that no final decision had been made on the amount to be raised, adding that the company aims to enhance its valuation in line with other AI hardware suppliers.