Nasdaq officials see a wave of momentum drawing international corporations toward U.S. capital markets, following South Korean chipmaker SK Hynix’s record-breaking Wall Street debut.
- SK Hynix successfully secured $26.5-billion in its historic American depositary receipt (ADR) debut.
- Nasdaq Inc. President Nelson Griggs reported a significant uptick in inquiries from overseas businesses considering either new initial public offerings.
- International firms are actively choosing U.S. exchanges because of the deeper pools of capital and the ability to command stronger market valuations.
The historic Wall Street debut of South Korean memory chipmaker SK Hynix Inc. (SKHVY) has triggered a rush of interest from international companies looking to tap into U.S. exchanges, according to Nasdaq Inc. leadership.
Semiconductor giant SK Hynix’s massive share sale is encouraging other international firms to look into entering the U.S. market, Nasdaq President Nelson Griggs, told Bloomberg in an interview.
The remarks follow Griggs' return from a European tour where he met with multiple overseas corporate executives looking to cross the Atlantic for capital.
A Monumental Debut
SK Hynix made history by raising $26.5 billion, marking the largest-ever U.S. listing by a foreign corporation. The massive transaction drew robust institutional interest, with total investor demand oversubscribing the initial offering sevenfold.
On its opening day, the artificial intelligence-focused chip manufacturer saw its ADRs skyrocket nearly 20% in intraday trading over the initial offering price of $149 per share.
Griggs noted that foreign corporations currently eyeing the U.S. financial landscape fit into two specific tracks: early-stage startups that have yet to list publicly, and well-established entities that already hold domestic listings but seek to expand their reach via secondary U.S. ADR vehicles.
"We're having more of those conversations than ADR-type listings, but both have a lot of momentum behind them," Griggs said in an interview with Bloomberg Television.
Seeking Premium Valuations
The migration toward Wall Street underscores a growing belief among global executives that American capital markets offer superior valuations for technology and high-growth sectors. Griggs pointed out that four of the top 10 largest capital raises in the market this year have originated from international businesses.
To achieve the historic listing, lead underwriters had to navigate volatile market cycles and complex pricing models. Griggs credited Wall Street institutions, specifically JPMorgan Chase & Co., for striking a difficult pricing equilibrium.
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