SK Hynix Files For Nasdaq Debut Under Symbol SKHY – Prepares For Multi-Billion Dollar ADS Sale

SK Hynix filed a registration statement with the Securities and Exchange Commission, a step toward listing on the Nasdaq Global Select Market under the ticker symbol SKHY.

• The 17.79 million shares offering represents about 2.5% of its total outstanding shares.
• BofA Securities, Citigroup, Goldman Sachs, and J.P. Morgan are serving as the underwriters for the offering.
• Reuters had earlier reported that the company is looking to raise about $29.4 billion.

South Korean memory chip maker SK Hynix has filed a registration statement with the Securities and Exchange Commission for a public offering of American Depositary Shares, marking a major step toward listing on the Nasdaq Global Select Market under the ticker symbol “SKHY.”

According to an SEC filing on Tuesday, the company plans to issue up to 17.79 million shares, representing about 2.5% of its outstanding shares. The offering size was structured to ensure its largest shareholder, SK Square, retains at least a 20% ownership stake as required under South Korean regulations.

SK Hynix is a major supplier of advanced HBM chips to Nvidia. 

SKHY To Reportedly Use Proceeds For Construction Of Semiconductor Production Facilities

The final offering price will be determined through discussions with the underwriters, taking into account the company’s share price and prevailing market conditions, though Reuters had earlier reported that the company is looking to raise about $29.4 billion, with the ADSs expected to be priced at $166 each.

BofA Securities, Citigroup, Goldman Sachs, and J.P. Morgan are serving as the underwriters for the offering.

The company said it intends to use the proceeds for general corporate purposes, including capital expenditures. Previous reports indicate the funds will support the construction of semiconductor production facilities in South Korea and the purchase of advanced Extreme Ultraviolet (EUV) lithography equipment.

The filing comes a day after Samsung Electronics, SK Hynix, and the South Korean government revealed plans to invest around $590 billion in a new chip manufacturing hub that will include four fabrication plants and double South Korea’s DRAM output over the next five years.

Nasdaq Listing To Boost SKHY’s Valuation

Last week, HSBC said it expects SK Hynix’s upcoming Nasdaq listing to boost its valuation by about 20%, lifting its price-to-book ratio from 2.8 to 3.4 and helping narrow the valuation gap with rival Micron Technology (MU).

Overall, the IPO market is on pace for a record year, with companies raising $251 billion through June 26, according to Bloomberg data.

Meanwhile, the Roundhill Memory ETF (DRAM) is up 160% so far this year, while the iShares Semiconductor ETF (SOXX) is up 96%. Samsung, SK Hynix, and U.S. memory giant Micron are the top three DRAM holdings. 

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