SK Hynix Weighs 0.5% Underwriting Fee for Planned US ADR Listing
Synopsis
SK Hynix is weighing a 0.5% underwriting fee ahead of its planned Nasdaq ADR listing, with book building set to begin on July 6.
Key Highlights
- SK Hynix may pay banks a 0.5% underwriting fee for the planned US ADR.
- Chipmaker is allowed to release a maximum of 2.5% of its share capital.
- July 6 is set for book-building and pricing is expected on July 9.
- SK Hynix aims for a July 10 Nasdaq listing.
- The company has previously said its US listing could raise to $29.4 billion.
SK Hynix was considering paying banks involved in its planned US American Depositary Receipt (ADR) offering an underwriting fee of about 0.5% of the proceeds.
The South Korean memory chipmaker has indicated it may issue up to 2.5% of its outstanding shares, although the final size of the offering has not yet been decided.
Listing Process Underway
The report also said SK Hynix could provide discretionary incentive payments on top of the standard underwriting fee. The company is expected to begin book-building for its ADR offering on July 6, set the final offer price on July 9, and make its Nasdaq debut on July 10.
Other banks involved in the transaction, including Goldman Sachs, JPMorgan Chase, and Bank of America, did not immediately respond to requests for comment.
AI Demand Drives Listing Plans
Last month, SK Hynix announced plans to raise to $29.4 billion through a US stock market listing, making it one of the largest planned global offerings. The company, the world’s second-largest memory chipmaker and a major supplier to Nvidia, is aiming to capitalise on strong investor demand for AI-related stocks.
Source: Reuters
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