SK Hynix Targets $28 Billion U.S. Listing as AI Demand Surges
Synopsis
The semiconductor company is set to launch one of the biggest equity offerings globally, reinforcing investor enthusiasm for AI-driven chipmakers.
Key Highlights
- SK Hynix Nasdaq listing with a $28 billion US offering.
- It will sell 17.79 million new shares via American Depositary Receipts (ADRs).
- Pricing is due on Thursday, with trading to commence Friday.
- The listing is one of the largest stock sales globally in response to high demand for ai.
South Korean chipmaker SK Hynix has opened its $28 billion US listing and appears to be one of the largest fresh listings in the world as it hopes to benefit from an explosion in demand for AI-related stocks worldwide.
In the regulatory filings, the company has said that it will be selling 17.79 million new shares through an American Depositary Receipt (ADR) at Nasdaq. In Seoul, SK Hynix will declare the price range for its 10 ADRs per common share.
AI Demand Drives Investor Interest
SK Hynix rose some 1% on Monday, having risen around 273% so far this year on AI stock demand.
The company now places it relatively to the likes of Samsung Electronics and Micron as some of those new producers of chips used for artificial intelligence also makes it one of the larger gainers from Artificial Intelligence. SK hynix is among the major suppliers of high-bandwidth memory (HBM) chips for AI systems which are used by customers like Nvidia and Google.
Pricing Due This Week
The stock is due to start trading on Friday, but the price of an offer will be fixed on Thursday. A roadshow this week will assemble global investors with company managers.
The deal is projected to be the second-biggest share sale since SpaceX’s $85.7-billion IPO record in-month, ahead of Saudi Aramco’s $25.6-billion 2019 listing and Alibaba Group Holding Ltd. 's similarly sized equity offering in 2014.
SK Hynix, last week also revealed a 100 trillion Won ($64.38 billion) investment in new semiconductors facilities as part of South Korea’s plans to invest heavily in AI, including for its NAND flash memory plant.
Source: Reuters
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