South Korean reminiscence chip maker SK Hynix has filed a registration assertion with the U.S. Securities and Change Fee in preparation for a Nasdaq itemizing that might increase as much as $29.4 billion.
The corporate plans to record its American Depositary Shares on the Nasdaq World Choose Market underneath the ticker SKHY. The providing could embrace as much as 17.79 million newly issued widespread shares, representing roughly 2.5% of the present variety of shares. Ten ADSs characterize one abnormal share.
At its largest scale, this providing would increase roughly 45.45 trillion gained. Preliminary valuations counsel a value close to $166 per ADS, however the ultimate value might be decided after discussions with underwriters and the completion of the bookbuilding course of.
SK Hynix plans to start out 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 isn’t a conventional preliminary public providing, as SK Hynix is already listed in South Korea. As a substitute, the ADS providing will give U.S. traders direct entry to the corporate and permit it to boost capital by way of a second public providing.
SK Hynix mentioned it’ll use the proceeds for normal company functions and capital expenditures. Deliberate investments embrace a brand new semiconductor manufacturing unit 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 techniques developed by prospects similar to Nvidia and Google. The corporate’s inventory has quadrupled this yr as demand for superior reminiscence tightens world provides.
A Nasdaq itemizing may additionally assist slender the valuation hole with U.S. rival Micron. HSBC estimates that SK Hynix’s price-to-book ratio may rise from 2.8x to three.4x, or about 20%, if entry to world traders improves.
The submitting comes as South Korea accelerates the broader growth of its semiconductor trade. Samsung Electronics and SK Hynix plan to construct 4 new manufacturing vegetation underneath an 800 trillion gained chip manufacturing venture geared toward doubling home reminiscence manufacturing capability over the subsequent 5 years.
