SK Hynix is reportedly considering paying roughly 0.5% of the proceeds from its planned U.S. listing to the banks underwriting the deal, according to people familiar with the matter. The South Korean memory chip manufacturer has also signaled it could place as much as 2.5% of its outstanding shares into the offering, although the definitive size of the sale has not yet been determined.
In addition to the base underwriting fee, the company may offer discretionary incentives on top of that fee to the banks handling the transaction. The Reuters reporting cited sources who described the fee structure as still under consideration and subject to potential adjustments.
Operationally, SK Hynix will commence the ADR book-building process on July 6. The company plans to set the final offer price on July 9 and proceed with its Nasdaq listing the following day. That timetable frames the immediate steps for the share sale and the transition to trading in the United States.
SK Hynix did not provide a comment when approached for confirmation. The lead banks on the share sale - Goldman Sachs, JPMorgan, Citigroup and Bank of America - did not immediately reply to requests for comment outside regular business hours.
Last month, the company disclosed plans to raise up to $29.4 billion through a U.S. stock market listing. The planned sale would rank among the largest listings globally and is being positioned by SK Hynix as a way to leverage investor interest in artificial intelligence-related stocks, with the company noted as a supplier to Nvidia.
The proposed fee level, the potential use of discretionary incentives and the undetermined final size of the offering all remain open variables as the book-building process approaches. Market participants and observers will be watching the timetable for July 6 to July 9 closely as SK Hynix finalizes terms ahead of its Nasdaq debut.