South Korean reminiscence chip maker SK Hynix has filed a registration assertion with the U.S. Securities and Trade Fee in preparation for a Nasdaq itemizing that might elevate as much as $29.4 billion.
The corporate plans to record its American Depositary Shares on the Nasdaq World Choose Market beneath the ticker SKHY. The providing could embody as much as 17.79 million newly issued frequent shares, representing roughly 2.5% of the present variety of shares. Ten ADSs symbolize one atypical share.
At its largest scale, this providing would elevate roughly 45.45 trillion received. Preliminary valuations counsel a value close to $166 per ADS, however the remaining value will probably be decided after discussions with underwriters and the completion of the bookbuilding course of.
SK Hynix plans to begin e-book constructing on July sixth, set the ultimate value on July ninth, and begin buying and selling on the Nasdaq on July tenth. BofA Securities, Citigroup, Goldman Sachs and JPMorgan are managing the providing.
The transaction will not be a standard preliminary public providing, as SK Hynix is already listed in South Korea. As a substitute, the ADS providing will give U.S. buyers direct entry to the corporate and permit it to lift capital via a second public providing.
SK Hynix mentioned it can use the proceeds for normal company functions and capital expenditures. Deliberate investments embody a brand new semiconductor manufacturing facility in South Korea and superior chip manufacturing tools, together with excessive ultraviolet lithography tools manufactured by ASML.
The corporate has emerged as one of many greatest beneficiaries of the AI infrastructure increase. SK Hynix is a number one provider of high-bandwidth reminiscence chips utilized in AI programs developed by prospects similar to Nvidia and Google. The corporate's inventory has quadrupled this 12 months as demand for superior reminiscence tightens international provides.
A Nasdaq itemizing might additionally assist slender the valuation hole with U.S. rival Micron. HSBC estimates that SK Hynix's price-to-book ratio might rise from 2.8x to three.4x, or about 20%, if entry to international buyers improves.
The submitting comes as South Korea accelerates the broader enlargement of its semiconductor business. Samsung Electronics and SK Hynix plan to construct 4 new manufacturing vegetation beneath an 800 trillion received chip manufacturing undertaking aimed toward doubling home reminiscence manufacturing capability over the subsequent 5 years.
