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SK Hynix Seeks $29.4 Billion in U.S. ADR Offering

The raise is intended to fund new South Korean chip fabs to expand high-bandwidth memory capacity for AI datacenters.

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Overview

  • SK Hynix filed regulatory documents on Wednesday to offer up to $29.4 billion of American Depositary Receipts, issuing as many as 17.79 million new ordinary shares represented by 10 ADRs each.
  • The company says net proceeds will finance construction of South Korean fabs and the purchase of advanced manufacturing kit, including ASML extreme ultraviolet (EUV) lithography scanners.
  • The ADRs are expected to begin trading on the Nasdaq under the ticker SKHY on July 10, and the deal is being coordinated by Bank of America, Citigroup, Goldman Sachs and JPMorgan.
  • Investors lifted SK Hynix shares after the announcement but analysts warn the semiconductor and AI-linked sector remains highly volatile with large recent intraday swings.
  • The offering would rank among the largest equity raises on record and could narrow SK Hynix’s valuation gap with U.S. peers while testing how much capital global markets can absorb for big AI-related funding needs.