(March 24): SK Hynix Inc is seeking to raise 10 trillion won to 15 trillion won (US$10 billion or $13 billion) from a potential listing in the US, the Korea Economic Daily reported, as companies rush to increase capacity to meet memory chip demand fuelled by the artificial intelligence (AI) boom.
The South Korean chipmaker plans to issue new shares for a listing of American depositary receipts, the publication said, citing industry sources it didn’t name. SK Hynix is earmarking the potential proceeds for building AI infrastructure such as a semiconductor cluster in Yongin, South Korea, as well as for expanding capacity for memory products, the Daily said.
“Various measures to enhance shareholder value, including ADRs, are currently under review,” an SK Hynix spokesperson said in response to the report. “However, nothing has been finalised.”
A US listing would give the company access to a fresh pool of investors and could help SK Hynix narrow a gap in its valuation compared with global competitors. The company has been one of the biggest global winners of the rush for memory chips. A 364% gain in its shares has been one of the key drivers in South Korea’s benchmark Kospi index rising 110% in the past year.
“Once US institutional investors gain direct access to the AI infrastructure theme through an ADR, the premium multiple that SK Hynix’s dominant HBM position truly deserves could finally be reflected in its valuation,” said Ha SeokKeun, chief investment officer at Eugene Asset Management Co.
The deal, if it were to pan out, would rank among the biggest New York listings by foreign companies. Asian issuers that have already been listed in the US include chipmaker Taiwanese chipmaker Taiwan Semiconductor Manufacturing Co.
See also: Alibaba unveils new chip design to meet surging demand for AI
TSMC’s ADR listing enabled it to tap into foreign investor flows, cementing its status as a US investor favourite — particularly as part of the AI-driven rally. Beyond active investors, significant passive inflows from ETFs tracking US-listed shares have further boosted its valuation relative to the Taipei listing. At one point last year, the price gap between the two markets exceeded 30%.
SK Hynix this year cancelled about 15.3 million treasury shares worth roughly 12.2 trillion won to boost shareholder value. The size of the potential US listing may be about 2.4% of outstanding shares, roughly equivalent to the number of cancelled treasury shares, the Daily said.
SK Hynix also sent a request for proposals to investment banks to select its listing arrangers, the Maeil Business Newspaper reported separately, citing people in the investment banking industry it didn’t name.
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