SK Hynix Raises $26.5 Billion in Nasdaq ADR Offering to Fund AI Chip Expansion

South Korean memory chip manufacturer SK Hynix has successfully priced its U.S. American Depositary Receipt (ADR) offering, raising approximately $26.5 billion in one of the largest overseas equity sales ever by an Asian company. The move underscores strong investor demand for firms central to the artificial intelligence supply chain.

Offering Details

According to a report from Investing.com, SK Hynix priced 177.9 million ADRs at $149 each. The shares are set to begin trading on the Nasdaq stock exchange on Friday under the ticker symbol SKHY.

The capital raised is earmarked to finance the construction of new fabrication facilities and purchase equipment. This will expand the company's production of high-bandwidth memory (HBM) chips, a critical component for AI accelerators used in data centers.

Strategic Rationale

SK Hynix has established itself as a leading supplier of HBM to Nvidia, placing it at the forefront of the global AI infrastructure boom. The U.S. listing is viewed as a strategic step to broaden its shareholder base beyond its domestic market.

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Investors also see the Nasdaq listing as a potential catalyst to narrow the valuation gap with U.S.-based competitor Micron Technology. Despite SK Hynix's lead in the HBM market, Micron has historically traded at a higher forward earnings multiple.

Market Reaction

Following the announcement, SK Hynix shares (KS:000660) listed in Seoul rose a modest 0.6%, lagging a 3.8% gain in South Korea's benchmark KOSPI index. The muted reaction suggests investors are weighing the impact of share dilution against the strong institutional demand for the heavily oversubscribed offering.

The stock has seen significant volatility recently, retreating about a quarter from its record highs amid a broader pullback in AI-related equities. However, it remains up approximately 680% over the past 12 months, reflecting explosive growth driven by the insatiable demand for AI memory chips.