SK Hynix, the world’s leading supplier of AI memory chips and South Korea’s most valuable company, is preparing for a Nasdaq debut on July 10 through a planned $29 billion American depositary receipt (ADR) offering.
The company said in a regulatory filing that it plans to issue 17.79 million new shares worth 45.45 trillion won ($29.65 billion) to back the ADR listing. Though the timeline remains subject to change, the proposed debut would give US investors direct exposure to one of the biggest winners of the artificial intelligence boom.
Nasdaq listing set to give major global push
SK Hynix said the US listing is aimed at increasing its investor base and strengthening its presence in the world’s largest capital market. The company added that it expects the ADR listing to expand its investor base, “ultimately allowing its true corporate value to be properly evaluated.”
“We expect to elevate our status as a global company by broadening our touchpoints in the United States, the epicenter of AI technological innovation,” SK Hynix said in the filing. The offering is being managed by major Wall Street banks including BofA Securities, Citigroup Global Markets, Goldman Sachs and JP Morgan Securities, according to Reuters.
AI demand behind massive expansion plans
The fundraising comes as SK Hynix accelerates investments to keep up with soaring AI-driven demand for advanced memory chips. The company said proceeds from the offering will be used to build a semiconductor fabrication plant in Yongin, an advanced packaging facility in Cheongju and purchase chipmaking equipment, including Extreme Ultraviolet (EUV) scanners.
SK Hynix is also developing the massive Yongin semiconductor cluster in South Korea, which is expected to begin operations in 2027. In the US, the company is investing $4 billion in a chip packaging facility in Indiana, its first major manufacturing project in the country.
AI has created a global scramble for high-bandwidth memory (HBM), a critical component used in training and running advanced AI models. The technology requires large amounts of memory, making HBM one of the hottest segments in the semiconductor industry.
According to Counterpoint Research Director MS Hwang, SK Hynix controls around 60% of the HBM market. “What is clear is that SK is definitely the top notch player in HBM. And it is better in cost of manufacturing. So its operating margin is the best. So it has the best product, lowest cost. What do you need else?” Hwang told CNBC on June 17.
One of the biggest share sales ever
Investor enthusiasm around AI has helped drive a stunning rally in SK Hynix shares. The stock has gained more than 280% this year, pushing the company’s market value to about $1.35 trillion and helping it overtake Samsung Electronics as South Korea’s most valuable company.
If completed, the fundraising would rank among the five largest equity offerings in history, putting it in the same league as Saudi Aramco’s record-setting 2019 IPO. The July 10 Nasdaq debut is expected to be closely watched by investors looking for the next phase of growth in the AI infrastructure trade.
The planned listing comes as investors await fiscal third-quarter results from US memory-chip maker Micron Technology later on Wednesday. With expectations running high, analysts are expected to focus on updates related to HBM shipments, customer demand and pricing trends in the DRAM and NAND markets. The results could provide another important signal on whether AI-driven spending remains strong enough to support the semiconductor sector’s massive rally.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.
