SK Hynix's Record $26.5B US Listing to Attract More Foreign Firms, Nasdaq President Says

The record-breaking U.S. market debut of SK Hynix Inc. is increasing interest from other international companies in pursuing listings on American exchanges, according to Nasdaq Inc. President Nelson Griggs. The South Korean chipmaker's $26.5 billion share sale marked the largest-ever U.S. listing by a foreign company.

Growing International Interest

Speaking in a Bloomberg Television interview on Friday, Griggs said that conversations with foreign issuers are gaining momentum. He noted that interest is coming from two distinct groups: early-stage companies that have not yet gone public anywhere, and established firms with local listings that are now considering a U.S. presence through American Depositary Receipt (ADR) sales.

"We're having more of those conversations than ADR-type listings, but both have a lot of momentum behind them," Griggs stated. He added that of the top ten largest fundraising deals in the U.S. this year, four have been from international companies, who are drawn to U.S. capital markets in the belief they will receive the best valuation.

The SK Hynix Blueprint

SK Hynix's ADRs surged almost 20% above their offering price during their first day of trading, a strong performance that serves as a powerful signal to other global firms. The successful pricing and subsequent market stability are seen as key factors in building confidence for future international listings.

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Griggs credited the deal's underwriters, including JPMorgan Chase & Co., for achieving a successful pricing balance. He explained that the offering had to be priced not only against domestic comparable equities but also against major U.S. competitor Micron Technology Inc. "JPMorgan did a very nice job here getting that price to a point where we are seeing some nice upward price action," he said.

Future Market Activity

Griggs also commented on SK Hynix Chairman Chey Tae-won's intention to monitor the ADRs' stability before returning to U.S. markets for more capital, calling it typical for experienced public companies. He suggested that for a mature firm like SK Hynix, future fundraising would likely involve issuing more ADRs rather than a traditional IPO.

When asked about the possibility of a U.S. listing by SK Hynix's competitor, Samsung Electronics Co., Griggs declined to comment, stating that Nasdaq does not discuss prospective deals before they are made public.