SK hynix, a leading global memory chip manufacturer, is reportedly accelerating its ambitious plans for a significant US listing. The South Korean tech giant is now targeting an American Depositary Receipt (ADR) offering as early as June or July, according to an exclusive report from Herald Business released on Thursday.
This confidential timeline was recently communicated to underwriters by the prominent chipmaker, indicating a strategic shift from its previous stance of an undecided schedule. Last month, SK hynix had confidentially filed a draft registration statement (Form F-1) with the US Securities and Exchange Commission, publicly stating its intention to enter the US capital markets within the year.
The proactive move underscores SK hynix’s determined push to expedite its entry into US capital markets, aiming to secure broader access to global funding and strengthen its international presence.
Industry experts suggest that the timing of this crucial listing is unlikely to be swayed by short-term stock price fluctuations, reflecting a strategic, long-term focus on establishing a strong foothold in the influential US market.
Attention is now sharply focused on the potential deal size, with current estimates suggesting the offering could reach approximately $10 billion.
Despite maintaining substantial cash reserves nearing 35 trillion won ($24 billion), SK hynix faces immense demands for capital investment to keep pace with the rapidly expanding AI chip market. The company has already committed an impressive 21.6 trillion won through 2030 for its first fabrication plant within the innovative Yongin, Gyeonggi Province semiconductor cluster, with the total investment for this project expected to reach around 31 trillion won. Looking further ahead, SK hynix plans an monumental investment of up to 600 trillion won by 2050, demonstrating its long-term vision for leadership in the semiconductor industry.
This upcoming ADR offering is anticipated to be backed by a new issuance of shares, following the company’s strategic cancellation of 12.24 trillion won worth of treasury stock earlier this year.
Analysts emphasize that a sizable deal will be instrumental in significantly improving liquidity and narrowing the existing valuation gap between SK hynix and its US-based industry peers, especially as its stock currently trades at a forward price-to-earnings ratio of roughly 3 to 4.
To gauge investor demand and build momentum, SK hynix is also actively preparing for a comprehensive US roadshow, likely to commence after its first-quarter earnings report.
The company maintains that the precise details of the offering, including its final size, structural specifics, and exact timing, remain subject to ongoing regulatory review processes and prevailing market conditions.
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