SK Hynix Pushes for Nasdaq ADR Listing ... Reactions from Major Foreign Media

The global financial market and foreign media are focusing their attention on the news of SK Hynix's push to list American Depositary Receipts (ADRs) on the US Nasdaq. Expectations are mounting for aggressive investments in cutting-edge facilities through large-scale funding, as well as a full-fledged re-evaluation of its corporate value based on its dominance in the artificial intelligence (AI) memory market.

Historic Funding Scale Surpassing Alibaba

Above all, foreign media reacted most strongly to the overwhelming scale of funds to be raised through this listing. According to major reports by Reuters and others, SK Hynix plans to raise approximately 29.4 billion dollars (about 45.45 trillion won) by issuing new shares through this Nasdaq ADR listing. In particular, Reuters forecasted that if the transaction is concluded at the top end of the target price range, it will easily surpass the 21.8 billion dollars of Alibaba, China's largest e-commerce company that debuted on the New York stock market in 2014, becoming the largest ADR listing in history. Media outlets including the Wall Street Journal (WSJ) also evaluated this as a historic mega-deal comparable to the Saudi Aramco IPO and others.

Valuation Re-evaluation as an "AI Representative Stock" Led by HBM Dominance

The rapid surge in demand for AI infrastructure is cited as the core driver of this listing. Reuters reported that SK Hynix has emerged as the biggest beneficiary of the global AI boom as the dominant supplier of HBM (High Bandwidth Memory) used in the systems of global big tech companies such as Nvidia and Google. The Financial Times (FT) also emphasized that SK Hynix has secured a firm advantage in the HBM market, benefiting from the rapid surge in AI demand.

Entering the US stock market is also being interpreted as a signal for 'narrowing the valuation gap' in corporate value. Citing analysts' analyses, Reuters, FT, and others viewed that as access for US investors widens significantly, the discount factor applied compared to its US competitor Micron will decrease, presenting an opportunity to receive a similar valuation.

The Butterfly Effect of Supply Expansion Risks and Increased Investment Accessibility

However, there are also concerns underlying the rosy outlook. The prominent financial publication Barron's warned that as the massive funds raised this time are poured into new fab construction and equipment investments, memory production capacity will dramatically increase, which could stimulate a price war with competitors like Micron in the long run. It pointed out that not only the short-term AI memory craze but also the 'supply expansion risk' must be closely watched.

On the other hand, MarketWatch focused on the impact this listing will have on US investors. It analyzed that as US investors, who previously had to go through the Korean exchange or bypass via memory ETFs, become able to invest directly in SK Hynix, it could snatch the fund inflows concentrated on Micron in the short term, but in the long run, it will become a 'double-edged sword' that grows global capital's interest in the entire memory sector.

SK Hynix "Nasdaq Debut on July 10... Will Strengthen Status as a Global Company"

Amidst such heated market reactions, SK Hynix has also released its official position and detailed schedule. The SK Hynix PR team announced that it disclosed matters related to the ADR listing following a board of directors resolution on the 24th, and plans to submit a registration statement (Form F-1) to the US Securities and Exchange Commission (SEC) in time for the local US market opening. Citibank will serve as the depositary bank, while Bank of America (BofA), Citigroup, Goldman Sachs, JPMorgan, and others will participate as underwriters.

According to the disclosed tentative schedule, under the premise of approval from Korean and US financial authorities and the registration statement becoming effective, the company plans to commence the book-building process on July 6, aiming to finalize the public offering price and commence Nasdaq listing and trading on July 10 (US time). The offering volume this time is up to 17.79 million registered common shares, which is equivalent to approximately 2.50% of the current total number of issued shares, and the final volume and issuance conditions will be finalized based on market conditions and book-building results. The new shares issued under the finalized conditions will be additionally listed on the KOSPI market on July 29.

The raised funds are planned to be used entirely for capital expenditures (CAPEX), including the construction of the first fab at the Yongin Semiconductor Cluster (approximately 31 trillion won), the establishment of the Cheongju advanced packaging (P&T7) facility (approximately 19 trillion won), and the purchase of extreme ultraviolet (EUV) lithography equipment (approximately 11.94 trillion won).

SK Hynix stated, "Following this ADR listing, the investor base will expand, ultimately enabling us to receive a proper evaluation of our corporate value," adding, "We expect our status as a Global Company to be further elevated by broadening our touchpoints in the US, the center of AI technological innovation."