SK Hynix Shares Rise in Nasdaq Debut After Record $26.5 Billion Foreign IPO

South Korean memory chip giant SK Hynix saw its shares close higher in their Nasdaq debut on Friday, following a landmark initial public offering that raised $26.5 billion — the largest ever in the United States for a foreign company. The successful listing signals strong investor appetite for major technology offerings tied to the artificial intelligence boom.

Record-Breaking Debut

The company sold its American Depositary Receipts (ADRs) at an offering price of $149 each. The ADRs, trading under the ticker SKHY, finished their first session at $168.01, a gain of 12.8%.

Investor interest was exceptionally high, with reports indicating the offering was more than seven times oversubscribed, according to David Morrison, Senior Market Analyst at Trade Nation. The IPO is the second-largest U.S. share sale this year, following the recent listing of SpaceX.

AI Demand and Market Context

SK Hynix's debut comes as the semiconductor sector has experienced some recent cooling after a prolonged rally. However, investor enthusiasm for the company remains strong, with its Seoul-listed shares having gained approximately 650% over the past year, driven by its critical role in supplying high-bandwidth memory (HBM) chips for AI infrastructure.

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Underscoring the intense demand, SK Hynix CEO Kwak Noh-jung told Reuters that the industry is facing a severe supply shortage. "We forecast that next year will be the worst year in the industry’s history from the supply perspective," Kwak said, adding that customer demand is expected to exceed the company's production capacity beyond 2030.

Strategic Rationale

By listing on Nasdaq, SK Hynix gains direct access to the world's largest capital market. The company plans to use the proceeds to expand its production capacity, including the purchase of advanced extreme ultraviolet (EUV) lithography equipment, according to regulatory filings.

The strong reception could encourage more Asian technology firms to pursue U.S. listings. The market is already showing sustained interest, with at least 10 fund managers filing to launch single-stock ETFs that will track SK Hynix's performance.