SK Hynix ADRs surge 13% in second-largest US share sale
South Korean memory chipmaker SK Hynix raised significant capital through a heavily oversubscribed US listing, giving it direct access to American investors to fund factory expansion amid a global shortage of AI memory chips.
SK Hynix’s American depositary receipts opened at $170 on Thursday, a 13% jump from the offering price of $149. The listing is the second-largest US share sale to date, trailing only SpaceX’s record initial public offering last month.
Each ADR represents one-tenth of a common share on the Korean exchange. The $149 offering price represented a 2.7% premium to the stock’s average over the previous three trading sessions in Seoul. Demand for the offering exceeded supply by a wide margin, with the deal subscribed more than seven times.
Securing US-listed capital allows SK Hynix to diversify its funding sources beyond its domestic market. The company plans to use the proceeds to construct new factories, a critical move as the industry struggles to keep pace with the infrastructure demands of the artificial intelligence sector.
As Korea’s second most valuable company, SK Hynix produces high-bandwidth memory (HBM) chips. These components have become increasingly scarce as major technology companies spend hundreds of billions of dollars on advanced AI processors. This supply crunch has driven up memory prices, positioning HBM manufacturers as the primary "picks and shovels" providers for the AI boom.
Technology companies are financing this massive infrastructure buildout by raising capital through both equity offerings and debt markets. However, the broader semiconductor sector has recently lost momentum as investors grow cautious about the sustainability of future AI spending following an extraordinary rally.
SK Hynix’s Seoul-listed shares have dropped approximately 25% from their record high set just two weeks ago. Despite this recent rout, the company's valuation has expanded more than sevenfold over the past year. The stock remains roughly 630% higher than its level twelve months ago, reflecting the sheer scale of capital flowing into the AI supply chain.
