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SK hynix Confirms ADR Listing Review as Korea Exchange Issues Investment Warning

The review seeks to draw U.S. investors to reduce a valuation gap with Micron.

Overview

  • SK hynix said in a regulatory filing it is reviewing a U.S. stock-market listing using treasury shares but has made no decision and will update investors within one month.
  • Reporting by Korea Economic Daily said banks pitched an ADR program using about 2.4% of outstanding shares, or roughly 17.4 million shares, backed by treasury stock.
  • Shares rose on Wednesday after the filing, then fell 3.75% to 565,000 won on Thursday after the Korea Exchange designated the stock an investment warning that requires 100% cash margin and restricts margin trading and alternative venues.
  • Analysts say an ADR could broaden access for U.S.-only funds and help close a valuation gap with U.S. peers, while also offering a way to use treasury shares as Korea considers stricter cancellation rules.
  • The potential move comes as SK hynix posts strong AI-driven results and leads in high-bandwidth memory used with Nvidia’s processors, adding commercial momentum to a possible U.S. market presence.