SK Hynix’s (NASDAQ:SKHX) record-breaking Nasdaq debut on Friday is already creating a furor in the ETF universe, with issuers rushing to launch leveraged products tied to the South Korean memory-chip leader, as U.S. investors gain direct access to one of the biggest beneficiaries of the AI boom.
The company raised $26.5 billion after pricing 177.9 million American depositary shares (ADSs) at $149 each, making it the largest U.S. IPO ever by a foreign company, surpassing Alibaba Group Holding Ltd’s (NYSE:BABA) 2014 debut. Investors reportedly oversubscribed the offering sevenfold.
For ETF issuers, the listing is more than a blockbuster IPO. It opens the door to one of the AI supply chain’s most important companies, and marks the latest battleground in the fast-growing single-stock ETF market.
ETF Issuers Wasted No Time
With SK Hynix now trading, ETF providers have moved quickly to capitalize on anticipated demand for amplified exposure, even quicker than the IPO itself.
