Memory chip maker SK Hynix seeks to raise $28B through U.S. IPO
SK Hynix Inc., the South Korean firm that rivals Samsung Electronics Co. Ltd and Micron Technology Inc. as one of the world’s top memory chipmakers, said today it will sell almost 17.8 million shares when it launches its U.S. initial public offering later this week.
The sale is expected to help the company raise around $28 billion in funding, based on its closing share price in Seoul earlier today.
SK Hynix will be selling American depository receipts to U.S. investors. Known as ADRs, they’re a kind of certificate that makes it possible to trade foreign stocks without having to trade directly on an overseas exchange platform. Each ADR will represent the equivalent of a tenth of a common share, the company said. It’s expecting to price the securities on Thursday, before trading begins on Friday morning.
Similar to Micron and Samsung, SK Hynix has benefited immensely from the artificial intelligence-fuelled demand for memory chips in the last couple of years, with its momentum driving it to numerous all-time highs in terms of both its revenue and its value. First quarter sales were up almost 200% from the same period one year earlier, while the stock has gained more than 260% since the start of the year.
