SK Hynix shares moved slightly higher on Friday after the South Korean memory-chip maker completed a large U.S. American Depositary Receipt (ADR) offering, raising roughly $26.5 billion. The company set the price at $149 per ADR for 177.9 million ADRs, and the new shares are scheduled to begin trading on the Nasdaq under the ticker SKHY.
The funds raised are intended to finance new fabrication facilities and equipment as SK Hynix expands production of high-bandwidth memory (HBM) chips. HBM is a key memory technology used in data centres alongside AI accelerators, and SK Hynix has emerged as Nvidia's leading supplier of HBM components. That positioning places the company near the center of investment flows tied to artificial intelligence infrastructure.
On the Korean bourse, SK Hynix shares rose 0.6% to 2,198,000 won on the announcement. That gain lagged the broader KOSPI benchmark, which advanced 3.8% on the day. Market participants appeared to focus on the strength of institutional demand backing the offering rather than the share dilution that results from the capital raise.
The company’s stock has experienced a turbulent recent stretch. After setting record highs earlier this year, SK Hynix has pulled back roughly a quarter from those peaks as AI-linked chipmakers broadly retreated. Despite that pullback, the share price remains about 680% higher over the past 12 months, reflecting sharp earnings growth driven by strong demand for AI memory chips that has outpaced supply.
Aside from supplying fresh capital for capacity expansion, the U.S. listing is viewed by investors as strategically significant. A Nasdaq presence could widen SK Hynix’s shareholder base and may help reduce its valuation gap with U.S.-listed Micron Technology, which trades at a higher forward earnings multiple despite trailing SK Hynix in the high-bandwidth memory market. Attention now turns to the ADR’s Nasdaq debut, where investors will observe whether Wall Street assigns a premium valuation to one of the industry’s most important HBM suppliers following a heavily oversubscribed institutional demand for the offering.
Market context
- The proceeds are earmarked for fabrication and equipment to expand HBM production capacity.
- SK Hynix has become a leading supplier of HBM used with Nvidia AI accelerators in data centres.
- The U.S. ADR listing could broaden the shareholder base and affect valuation comparisons with U.S.-listed peers.
Near-term focus
Investors will be watching the ADR’s performance on Nasdaq and whether U.S. market valuation dynamics narrow the discrepancy with competitors. The company’s recent share volatility and the dilution from the offering are likely to remain factors for market participants evaluating SK Hynix.