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 would elevate as much as $29.4 billion.
The corporate plans to listing its American Depositary Shares on the Nasdaq World Choose Market beneath the ticker SKHY. The providing might embody as much as 17.79 million newly issued widespread shares, representing roughly 2.5% of the present variety of shares. Ten ADSs symbolize one strange share.
At its largest scale, this providing would elevate roughly 45.45 trillion received. Preliminary valuations recommend 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 ebook 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.
This transaction isn’t a conventional preliminary public providing, as SK Hynix is already listed in South Korea. As an alternative, the ADS providing will give U.S. buyers direct entry to the corporate and permit it to boost capital by way of a second public providing.
SK Hynix mentioned it’s going to use the proceeds for common company functions and capital expenditures. Deliberate investments embody a brand new semiconductor manufacturing unit in South Korea and superior chip manufacturing gear, together with excessive ultraviolet lithography gear manufactured by ASML.
The corporate has emerged as one of many greatest beneficiaries of the AI infrastructure growth. SK Hynix is a number one provider of high-bandwidth reminiscence chips utilized in AI programs developed by prospects comparable to Nvidia and Google. The corporate’s inventory has quadrupled this 12 months as demand for superior reminiscence tightens world 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 world 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 crops beneath an 800 trillion received chip manufacturing challenge aimed toward doubling home reminiscence manufacturing capability over the subsequent 5 years.
