SK Hynix (HXSCL), a Korean memory chipmaker, appears to be drawing heavy investor demand for its planned U.S. listing, with its offering more than seven times oversubscribed, according to people familiar with the matter. The sale of 177.9 million American depositary receipts has attracted institutional demand from global long-only funds, technology-focused funds, sovereign wealth funds and Asia-focused global investors, suggesting investors may still be willing to back major AI-linked chip names despite recent volatility in the sector.
Each SK Hynix ADR represents one-tenth of a common share, and based on the company's Wednesday closing price in Seoul of 2.076 million won, or $1,380, the offering would raise about $24.5 billion, according to Bloomberg calculations. At that level, the listing would rank among the largest U.S. debuts by a foreign company, second only to Alibaba Group Holding Ltd., a Chinese e-commerce and technology company, whose debut raised $25 billion, according to Bloomberg data. The ADRs are expected to begin when-issued trading Friday on the Nasdaq Global Select Market under SKHYV, before switching to SKHY when regular-way trading begins July 13.
The strong order book comes even as SK Hynix shares fell 5.7% in Korea on Wednesday and are now down 30% from their late-June record close, though the stock remains roughly triple its level at the start of the year. Vey-Sern Ling, managing director at Union Bancaire Privee, said the demand points to strong investor interest and noted there was no evidence of a slowdown in memory-chip demand, while the key debate remains the sustainability of earnings and valuation. Investors may view the listing as another major test of appetite for AI infrastructure exposure, with SK Hynix and Samsung Electronics Co. (SSNLF), its longtime rival, expected to increase investment as part of a South Korean government-led initiative worth $880 billion.