News
SK Hynix Eyes $29 Billion Nasdaq Debut
South Korean memory chip maker SK Hynix plans to raise as much as $29.4 billion through a U.S. listing, positioning the Nvidia supplier for one of the world's largest share sales as investor demand for AI-related stocks continues to surge.
Key Highlights
- SK Hynix to list on the Nasdaq, aiming to raise $29.4 billion.
- The money will go toward new chip factories and manufacturing equipment.
- The company is experiencing continued growth due to strong demand for AI.
SK Hynix, the world’s second-largest memory chip maker by revenue, announced plans to list on the U.S. stock market, Nasdaq, to raise up to $29.4 billion as it seeks growth amid demands for artificial intelligence infrastructure expansion.
If priced at the top, the offering would be the second-largest share sale in the world after SpaceX’s $85.7 billion IPO earlier this month. And it would also take the crown from Saudi Aramco’s $25.6 billion IPO back in 2019, and Alibaba’s similarly-sized listing as well back in 2014.
The launch comes amid ongoing high investor interest in AI-centric firms after a rise in the volatility of technology and semiconductor equities in US markets.
Funds to Support Expansion
South Korea’s second-largest chipmaker, SK Hynix, said proceeds from the U.S. share offering will be used for its construction of new chip production facilities in South Korea and purchase chip-making equipment like ultra-advanced chipmaking equipment supplied by Dutch supplier ASML whose shares increased 1.1% on Wednesday,
It plans to issue up to 17.79 million new shares worth 45.45 trillion Won ($29.43 billion). Each ADR will constitute one common share, with the final pricing to be established following the bookbuilding exercise although the first range is based on Tuesday's close price of 2.555 million Won.
AI Drives Business Growth
SK Hynix is one of the leading suppliers of high-bandwidth memory chips for artificial intelligence systems, and has been a major beneficiary of the AI boom, supplying to companies like Nvidia and Google.
This week it overtook Samsung Electronics as South Korea’s most valuable public corporation. The market value now is approximately $1.2 trillion, and its share price has quadrupled this year. A U.S. listing could boost SK Hynix’s valuation by enabling more direct competition to Nasdaq-listed rival Micron, analysts said.
The company projected it could raise as much as $14 billion through a U.S. listing, earlier this year. BofA Securities, Citigroup Global Markets and Goldman Sachs and JP Morgan Securities are serving as the lead on the offering.
Source: Reuters
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