Story
SK Hynix Set to Raise $26.5 Billion in Landmark US Listing Driven by AI Chip Demand
Summary
The South Korean memory chip giant is pricing its Nasdaq offering at a reported $149 per ADR, one of the largest public offerings in history, as it seeks to fund expansion and close a valuation gap with US rivals.
SK Hynix, a global leader in advanced memory chips, is poised to price its blockbuster U.S. offering Thursday, in a deal expected to raise approximately $26.5 billion. The South Korean firm's American Depositary Receipts (ADRs) are scheduled to begin trading on the Nasdaq Friday under the ticker symbol "SKHY," marking a significant move to tap U.S. capital markets amid soaring demand for its artificial intelligence-focused hardware.
Offering Details
According to reports from both Bloomberg and Reuters, the offering of 17.79 million new shares is expected to be priced at $149 per ADR, a figure the company has not yet officially confirmed. At this price, the deal would rank as one of the largest public offerings in history, surpassing Saudi Aramco’s $25.6 billion IPO in 2019.
Each ADR will represent one-tenth of a common share listed in Seoul. The company's Korean-listed stock has seen a meteoric rise, gaining 680% over the past year, driven by its critical role in the AI supply chain.
Strong Demand From AI Investors
The offering has drawn intense interest from institutional investors, with the bookbuild closing multiple times oversubscribed, according to Reuters. A group of prominent cornerstone investors has signaled significant commitment:
- Baillie Gifford Overseas
- Coatue Management
- Situational Awareness Partners, an AI infrastructure fund
AdThese three firms have jointly indicated interest in purchasing up to a combined $7 billion of the ADRs. This enthusiasm reflects SK Hynix's dominant position in the high-bandwidth memory (HBM) market, where it holds an estimated 50–55% share. HBM is a critical component in AI accelerators used by major tech firms like Nvidia and Google.
Strategic Rationale and Use of Proceeds
SK Hynix plans to allocate the entire proceeds toward expanding its manufacturing capacity. The capital injection is part of a broader, multi-year investment program to build and equip new facilities, including the Yongin Semiconductor Cluster and an advanced packaging plant in Cheongju.
Beyond funding growth, a key objective of the listing is to address the valuation discount at which SK Hynix trades compared to its U.S. peers. CEO Kwok Noh-jung has highlighted that competitor Micron Technology currently trades at a higher forward price-to-earnings multiple. "Through the ADR listing, we expect to... achieve a valuation that better reflects our corporate value," he said.
What to Watch
The immediate focus for investors will be the trading debut on Friday, July 10. The stock's performance relative to its $149 offering price will serve as a crucial test of U.S. market appetite for the AI memory investment thesis at this scale. Following the listing, the market will look ahead to SK Hynix's second-quarter 2026 earnings report on July 22, its first as a dual-listed company.