SK hynix raises $26.5bn in US listing amid AI chip boom
11 reported
South Korean chip maker SK hynix set pricing for its US listing on Friday, aiming to raise $26.5bn in what will be one of the world’s biggest stock sales. The company plans to issue about 18m shares on the Nasdaq index later in the day. SK hynix, a supplier of advanced memory chips to Nvidia, has seen profits rise due to the global race to build AI datacentres. The listing was more than seven times oversubscribed, according to US media. The amount raised surpassed Saudi Aramco’s 2019 $25.6bn debut and Alibaba’s $21.8bn New York IPO, but did not exceed SpaceX’s $75bn IPO last month. SK hynix will list through American depositary shares, with 177.9m depositary shares priced at $149.00 per ADS. The offering is led by BofA Securities, Citigroup Global Markets, Goldman Sachs (Asia) and JP Morgan Securities.
What’s reported
SK hynix aims to raise $26.5bn in its US listing on the Nasdaq.
The company plans to issue about 18m shares.
The listing was more than seven times oversubscribed, per US media.
The amount raised beats Saudi Aramco’s 2019 $25.6bn debut and Alibaba’s $21.8bn New York IPO.
It did not exceed SpaceX’s $75bn IPO last month.
SK hynix will list via American depositary shares; 177.9m depositary shares priced at $149.00 per ADS.
The offering is led by BofA Securities, Citigroup Global Markets, Goldman Sachs (Asia) and JP Morgan Securities.
SK hynix shares rose 2.7% on Seoul’s Kospi index after the announcement.
The company’s market capitalisation on the Kospi surpassed $1tn in May.
Proceeds will fund construction of a fabrication hub in Yongin and an advanced packaging facility in Cheongju.
SK hynix is also involved in an 800tn won public-private investment for a chip hub in southwest South Korea.
Key figures
SK hynix (company)
Nvidia (customer)
BofA Securities (lead underwriter)
Citigroup Global Markets (lead underwriter)
Goldman Sachs (Asia) (lead underwriter)
JP Morgan Securities (lead underwriter)
MS Hwang, Counterpoint Research analyst
Samsung (domestic rival)
Micron (US chip maker)
Apple (customer)
Elon Musk (founder of SpaceX)
Sources: The Guardian
