New york: South Korean chip giant SK hynix Inc. on Friday debuted on the tech-heavy Nasdaq through the listing of its American depositary receipts (ADRs), broadening access for global investors seeking exposure to the booming artificial intelligence (AI) infrastructure market.
According to Yonhap News Agency, the offering consists of 177.9 million ADRs priced at $149 each, raising about 40 trillion won ($26.5 billion). Each ADR represents one-tenth of a common share listed on the Seoul stock market. ADRs are negotiable certificates issued by U.S. depositary banks that represent shares in foreign companies, allowing overseas firms to access U.S. capital markets without directly listing their common stock on a U.S. exchange.
SK Group Chairman Chey Tae-won, along with SK hynix Chief Executive Officer (CEO) Kwak Noh-jung and other senior executives, attended a bell-ringing ceremony held in New York to commemorate the company's high-profile listing. The high-profile listing ranks among the largest U.S. equity offerings by a foreign company and the second-largest equity offering in the U.S. market after SpaceX, underscoring strong global investor appetite for companies at the center of the AI boom.
"We are here to build the future together because AI will be everywhere," Kwak said during the ceremony. In a statement, SK hynix said the Nasdaq listing will broaden its global investor base in the U.S. capital market and further strengthen its position as a key partner in the AI ecosystem. Beyond providing a substantial cash infusion, the company said the listing is expected to deepen its ties with the next-generation computing ecosystem, create new business opportunities, and strengthen strategic partnerships.
"Investing in SK hynix has not always been simple. Our ADR listing makes that access easier," Kwak said. The company added that the ADR listing will improve accessibility for investors worldwide, helping support continued innovation while contributing to the advancement of the semiconductor industry.
SK hynix earlier said the proceeds will be used to build a new semiconductor fabrication plant and an advanced chip packaging facility in South Korea. The company also plans to invest 11.9 trillion won in extreme ultraviolet (EUV) lithography equipment scheduled for installation by the end of next year. The Nasdaq debut is also expected to help narrow SK hynix's valuation gap with U.S. rival Micron Technology Inc.
Analysts noted that Taiwan Semiconductor Manufacturing Co. (TSMC) has benefited from its U.S. listing by attracting a broader global investor base and trading at a premium to its Taipei-listed shares.