Despite 30% Correction from Korean Peak, Fervor Unabated! SK Hynix ADR Reportedly Oversubscribed by Over 7x, Official Trading Starts July 13

According to sources, SK Hynix's American Depositary Receipts (ADRs) issued for the U.S. market have received enthusiastic market response, with subscription levels already exceeding seven times. The company is scheduled to finalize pricing on Thursday (9th).

Bloomberg, citing unnamed sources, reported that the issuance of 177.9 million ADRs has drawn strong interest from global long-term funds, technology-focused funds, sovereign wealth funds, and international investment institutions targeting Asian markets.

Based on documents previously filed by SK Hynix with the U.S. Securities and Exchange Commission (SEC), each ADR represents one-tenth of an ordinary share. Using SK Hynix's closing price in Korea on Wednesday—2.076 million Korean won per share (approximately $1,380)—the fundraising scale for this U.S. listing is estimated at around $24.5 billion.

In terms of fundraising amount, this would become the second-largest foreign corporate listing in U.S. history, surpassed only by Alibaba's (BABA-US) $25 billion record set in 2014.

SK Hynix's U.S. listing comes amid recent significant declines in both its Korean-traded stock and that of its U.S. competitor Micron (MU-US), reflecting a cooling of market optimism surrounding the AI infrastructure boom.

On Wednesday, SK Hynix's Korean shares closed down 5.7%, retreating approximately 30% from its late-June historical closing high. Nevertheless, its stock price remains about three times higher than at the beginning of the year.

The underwriting syndicate is scheduled to close order collection at 4:00 PM on Wednesday. The offering is jointly led by Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase, with nine other financial institutions also participating.

Market sources indicate that institutions such as Baillie Gifford, Coatue Management, and Situational Awareness Partners intend to subscribe for up to $7 billion worth of ADRs collectively.

Additionally, SK Hynix, along with its long-time rival Samsung Electronics, will increase domestic investments in line with the South Korean government's AI industry investment initiative, which has a total scale of $880 billion.

SK Hynix's ADRs are scheduled to begin when-issued trading on the Nasdaq Global Select Market this Friday under the ticker 'SKHYV', before officially listing and changing the ticker to 'SKHY' on July 13.