South Korean SK Hynix 000660.KS is considering raising 10 trillion to 15 trillion won ($10.03 billion) through a potential listing in the United States with the aim of expanding its production capacity for advanced memory chips, the Korea Economic Daily reported.
A U.S. listing would allow supplier Nvidia NVDA.O to access a larger pool of capital and could help narrow the valuation gap compared to global peers such as Micron MU.O, according to the newspaper.
Here are some details:
– SK Hynix plans to issue new shares to support a listing of American Depositary Receipts (ADRs), with funds likely to be used for building AI infrastructure and increasing memory product capacity, the newspaper reported, citing anonymous industry sources.
– The chipmaker, in a statement to Reuters, said it was exploring various measures to improve shareholder value, including an ADR listing, but added that nothing has been finalized.
– Last week, SK Group chairman Chey Tae-won stated that SK Hynix was studying the possibility of an ADR listing in the United States to broaden its investor base beyond Korea and increase exposure to global investors.
– In January, SK Hynix announced the cancellation of around 12.2 trillion won in treasury shares, equivalent to 2.1% of the total outstanding shares, to enhance shareholder value.
– SK Hynix leads the market for high-bandwidth memory chips used in AI, with a 57% market share. It also holds a 32% share of the global DRAM memory market, used in AI chips and electronic devices, making it the second player after rival Samsung Electronics 005930.KS, according to Counterpoint.
– SK Hynix’s shares closed up 5.7%, compared to a 2.7% rise in the benchmark KOSPI index .KS11.
(1 $ = 1,495.0000 won)
