SK hynix has scaled back its planned Nasdaq American Depositary Receipt (ADR) offering, now targeting up to 43.14 trillion won ($28.14 billion). This revised figure is a decrease from the company’s earlier projection of 45.45 trillion won, a move attributed to the recent fluctuations in its KOSPI stock price. The chipmaker’s shares closed at 2.42 million won on Friday, down from 2.55 million won on June 23.
The company intends to issue approximately 17.79 million new shares for the ADR listing, which is slated for July 29. This represents about 2.5 percent of SK hynix’s total outstanding shares. The subscription and payment periods are scheduled for July 14, with the final offering amount to be determined after the book-building process.
ADRs offer foreign companies like SK hynix a pathway to attract U.S.-based investors without the complexities of a full common share listing on American exchanges. The capital raised from this stock sale is designated for significant strategic investments. These include the construction of a new chip factory and an advanced packaging fabrication facility in South Korea. Funds will also be used to procure essential chipmaking equipment, notably including extreme ultraviolet lithography (EUV) technology.
This initiative to list ADRs on the U.S. stock market, first announced in March, is a key component of SK hynix’s strategy to broaden its appeal to global investors and support its ongoing advancements in the artificial intelligence sector.
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