Damian Herrera
SK Hynix's planned Nasdaq listing would rank among the largest share sales in stock market history, with the South Korean chipmaker filing with the SEC this week to raise roughly $29.65 billion through an American depositary receipt offering. Trading is expected to begin on July 10.
At a Glance
- Target raise: approximately $29.65 billion via ADR listing on Nasdaq
- Up to 17.79 million new shares, each represented by ten ADRs
- Initial pricing based on Tuesday's closing price of 2.555 million won per share
- Would surpass Alibaba's 2014 U.S. listing and Saudi Aramco's $25.6 billion IPO
- Trading expected to start July 10, pending bookbuilding
A Deal That Dwarfs the Record Books
If it prices at the upper end, this offering would eclipse two of the most storied share sales ever: Alibaba's 2014 debut on U.S. markets and Saudi Aramco's $25.6 billion IPO in 2019. The total value of the newly issued shares is pegged at 45.45 trillion won, with final pricing to be set after the bookbuilding process wraps up.
The scale is a sharp revision upward from what SK Hynix had telegraphed earlier. When the company filed confidentially for a U.S. listing back in March, a source placed the expected haul at no more than $14 billion. The figure disclosed this week is more than double that estimate.
BofA Securities, Citigroup Global Markets, Goldman Sachs, and J.P. Morgan Securities are managing the offering.
Why Nasdaq, and Why Now
SK Hynix made its reasoning plain in the SEC filing. The company said it expects the ADR listing to widen its investor base and that trading alongside U.S. rival Micron Technology will give it a better shot at a valuation more in line with American peers. The filing quoted the company directly: "We expect to elevate our status as a global company by broadening our touchpoints in the United States, the epicenter of AI technological innovation."
That framing is not incidental. SK Hynix supplies high bandwidth memory chips to Nvidia and Alphabet's Google, two of the biggest spenders on AI infrastructure anywhere. Those relationships have driven the company's stock up more than 300 percent this year and pushed its market capitalization to roughly $1.2 trillion, enough to nudge past Samsung Electronics and claim the top spot among South Korean listed companies.
Where the Money Goes
Proceeds are earmarked for expanding fabrication capacity in South Korea and buying manufacturing equipment, including extreme ultraviolet scanners from Dutch semiconductor tools maker ASML. The company is also building its first U.S. production site: a $4 billion advanced packaging facility in Indiana. A large new fabrication campus in South Korea's Yongin region is on track to begin operations in 2027.
Frequently Asked Questions
What is an American depositary receipt?
An ADR is a certificate issued by a U.S. bank that represents shares in a foreign company. It trades on U.S. exchanges in dollars, making it easier for American investors to hold foreign stocks without dealing in overseas markets. In this case, each SK Hynix common share will be represented by ten ADRs.
How does this compare to other big IPOs?
At roughly $29.65 billion, the offering would be larger than both Alibaba's landmark 2014 U.S. listing and Saudi Aramco's $25.6 billion IPO in 2019, placing it among the biggest share sales ever recorded.
Who are SK Hynix's main customers?
Nvidia and Alphabet's Google are among its largest customers, both relying heavily on SK Hynix high bandwidth memory chips for their AI computing infrastructure.
What is SK Hynix building in Indiana?
The company is developing a $4 billion advanced packaging facility in Indiana, which will be its first manufacturing site in the United States.
What Comes Next
With bookbuilding underway and a July 10 trading launch targeted, SK Hynix is moving quickly. The listing would not only give the company access to a deeper pool of U.S. capital but also place it directly alongside Micron on the Nasdaq, in a market increasingly defined by demand for AI chip infrastructure. The Indiana facility and the Yongin campus together suggest a company making long term bets on where that demand is heading.
