SK Hynix’s AI-Fuelled US Listing Sees Sevenfold Oversubscription
Synopsis
Investors have reportedly placed orders for more than seven times the available shares in the chipmaker's US$28 billion offering.
Key Highlights
- SK Hynix US$28 billion U.S. listing oversubscribed by more than seven times.
- The proceeds from the sale of these shares to Mr Deng will be used in building new factories and purchasing equipment needed to produce AI chips.
- SK Hynix shares climbed 6% in early trade.
SK Hynix saw more than seven times the demand for its US$28 billion U.S. share sale, making it one of the world’s largest AI chip providers. The South Korean chipmaker will use the proceeds for new factories and equipment as demand for AI chips rises. With a forecast to be the world’s second biggest share sale, beating SpaceX and its US$85.7 billion IPO last month.
Pricing Process Underway
The offering's anonymity is confidential. The stock exchange in South Korea will close on Thursday, and share allocations are expected to be finalised later on the same day in U.S. time.
Growth Continues to be Supported by AI Demand
SK Hynix shares gained 6% in early trade. Although semiconductor stocks have slowed their pace in recent weeks, shares of SK Hynix and Samsung Electronics rallied recently as demand for AI data centre chips keeps earning high.
Shares of SK Hynix have dropped some 25% in two weeks but still trade well over 680% higher than a year ago. After investing for over 14 years in the technology, it has become the largest supplier of high-bandwidth memory (HBM) chips to Nvidia.
Source: Reuters
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