South Korean chipmaker SK Hynix on Monday launched a U.S. share sale to raise $28.07 billion and drew indications of interest for up to $7 billion from major investors. The company will sell 17.79 million new shares through American depositary receipts (ADRs) on the Nasdaq.
Investor Interest
Baillie Gifford Overseas, investment funds managed by Coatue Management and Situational Awareness Partners have each separately indicated interest in buying up to a combined $7 billion worth of SK Hynix’s ADRs. The deal comes as Asian chip companies tap strong global demand for AI-related stocks.
SK Hynix’s shares ended Monday down 3.4% at 2,343,000 won, but the stock is still up about 260% this year. The company will use the proceeds from the listing to build chip factories in South Korea and buy chipmaking equipment.
Market Impact
The listing is expected to be the second-biggest share sale after a record $85.7 billion initial public offering by SpaceX last month. Some investors were cautious that memory “inflation” would dent spending on AI infrastructure, mobile phones, and PCs.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
