When a stock offering gets oversubscribed by more than seven times, the market is sending a fairly unambiguous message. SK Hynix, the world’s second-largest memory chipmaker, is getting that message loud and clear ahead of its Nasdaq debut.
The company’s American depositary receipt offering, valued at approximately $28B, drew investor interest so intense that demand exceeded available supply by over 700% before pricing.
What’s actually being offered
SK Hynix is listing 17.79 million new shares on Nasdaq under the ticker SKHY, structured as 177.9 million ADRs. The ratio works out to 10 ADRs per one common share, a standard mechanism foreign companies use to make their stock accessible to US investors without requiring a full domestic incorporation.
The deal is shaping up to be one of the largest US listings by a foreign company in recent memory. At roughly $28B, or 43 trillion Korean won, it dwarfs most tech IPOs of the past several years.
