SK Hynix ADR Offering in U.S. Oversubscribed by Over 7x, Highlighting Investor Appetite for AI Supply Chain Plays

According to sources, South Korea’s chip giant SK Hynix’s planned $28 billion U.S. American Depositary Receipt (ADR) offering has reportedly received over seven times oversubscription, highlighting strong investor appetite for the memory chipmaker, a key player in the artificial intelligence (AI) supply chain.

Reuters reported that SK Hynix is issuing ADRs to raise capital for building new facilities and purchasing equipment to meet surging demand for AI chips.

SK Hynix has officially surpassed Samsung Electronics in market capitalization, ending Samsung’s two-decade dominance. (AP)

This ADR offering is expected to become the second-largest equity fundraising in history, trailing only SpaceX’s record $85.7 billion IPO last month, and surpassing Saudi Aramco’s $25.6 billion IPO in 2019 and Alibaba’s similarly sized 2014 listing.

SK Hynix declined to comment. Due to confidentiality around the stock offering details, the source requested anonymity.

Beyond fundraising, SK Hynix’s U.S. listing is also expected to help narrow the valuation gap with its American rival Micron. Although Micron holds a lower market share in key memory products, it benefits from direct access to the world’s largest pool of investor capital.

Micron currently trades at a forward 12-month P/E ratio of 6.66x, compared to SK Hynix’s 5.5x.

The final ADR pricing is expected to be set today, with trading on the Nasdaq set to begin tomorrow.