SK Hynix’s American listing has been more than seven times oversubscribed, according to people familiar with the deal, a sign of heavy demand for one of the largest share sales Wall Street has fielded from a foreign company.
The South Korean memory-chip maker was due to price its offering of American depositary receipts on Thursday, ahead of a Nasdaq debut on 10 July, a step it first signalled earlier in the year.
The company is selling 177.9 million ADRs, each representing one-tenth of a common share, under the ticker SKHY. Bookbuilding, which opened on 6 July, closed early on Wednesday US time after orders covered the book several times over, the sources told Bloomberg and Reuters.
Demand came from a broad mix of institutions, including global long-only funds, technology-focused funds, sovereign wealth funds, and Asia-focused investors. Baillie Gifford, funds managed by Coatue Management, and Situational Awareness Partners had separately indicated interest in buying up to a combined $7bn of the ADRs, according to the reports.
In value terms, orders were said to have reached roughly $171.5bn, dwarfing the shares on offer. That level of interest handed underwriters an unusually strong base heading into final pricing.
