SOUTH KOREA: SK Hynix, South Korea most valuable company, plans to raise about $29 billion through a listing on the Nasdaq stock exchange in the United States.
The company will issue nearly 17.8 million new shares through American depositary receipts (ADRs). According to its regulatory filing, the offering is valued at around 45.45 trillion won, or $29.65 billion. The company expects its shares to begin trading on July 10, although the date could change. SK Hynix said the Nasdaq listing will help attract more international investors. It also believes the move will allow the market to better recognize the company true value. The company added that a stronger presence in the United States will support its growth in the fast moving artificial intelligence industry.
SK Hynix is expanding its operations as demand for AI technology continues to grow. The company is building a large memory chip manufacturing complex in South Korea called the Yongin Cluster. The project is expected to start operating in 2027. It is also investing $4 billion in a chip packaging plant in Indiana, marking its first major production facility in the United States.
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Several major banks are helping manage the share offering. These include Bank of America Securities, Citigroup, Goldman Sachs, and JP Morgan. The growing AI sector has increased demand for advanced memory chips. These chips are used in powerful AI systems and data centers around the world. SK Hynix is currently the leading supplier of high bandwidth memory (HBM) chips. Industry estimates suggest the company controls about 60% of the global HBM market.
Analysts say SK Hynix has strong products and lower production costs than many competitors. This has helped the company achieve strong profits and maintain its market leadership. Investor interest in AI related companies has pushed SK Hynix shares sharply higher this year. The company stock has risen more than 280%, helping its market value exceed $1 trillion.
However, some experts warn that South Korea stock market could face higher risks because Samsung Electronics and SK Hynix now make up a large share of the country main stock index, any slowdown in data center spending or supply chain problems could affect the market.
