Global investors have placed orders for more than seven times the shares available in SK Hynix’s upcoming American depositary receipt (ADR) offering, Bloomberg and Reuters reported.
According to Bloomberg, the offering has attracted strong interest from global long-only funds and technology-focused investors ahead of its expected pricing on Thursday.
Around 1,000 institutional investors participated in the company’s management roadshow earlier this week, reflecting broad investor interest in what is set to become one of the largest overseas listings on the Nasdaq.
The ADR issuance is equivalent to 17.79 million common shares.
SK Hynix previously said in regulatory filings that it would determine the final offering price on Thursday, with trading on the Nasdaq scheduled to begin on July 10.
Reuters had earlier reported that US-based investors submitted sizeable orders, with several ranging from $200 million to some exceeding $1 billion.
The company also disclosed on Monday that Baillie Gifford Overseas Limited, investment funds managed by Coatue Management, and Situational Awareness Partners had each separately indicated interest in purchasing up to a combined $7 billion of its US ADRs.
Based on SK Hynix’s closing share price in Seoul last Friday, the offering is valued at approximately $28 billion, putting it on track to become the largest-ever US listing by a foreign company.
The current target, however, is lower than the company’s earlier fundraising goal of 45.453 trillion won.
AI-driven memory demand continues to support long-term outlook
Each ADR represents one-tenth of a common share, with the offering accounting for roughly 2.5% of SK Hynix’s market capitalisation.
The company has emerged as one of the biggest beneficiaries of the global AI infrastructure boom.
Its market value has more than tripled this year as demand for high-bandwidth memory (HBM) chips used in AI servers surged.
SK Hynix has become Nvidia’s leading supplier of HBM chips after spending more than a decade investing in the technology, a strategy that has now positioned the South Korean company at the centre of the AI hardware supply chain.
Although semiconductor stocks globally have lost some momentum in recent weeks amid concerns over AI spending and broader market volatility, SK Hynix and rival Samsung Electronics continue to sit on substantial long-term gains thanks to robust demand from AI data centres.
SK Hynix shares have declined around 25% over the past two weeks following a sharp rally, but the stock remains up about 680% over the past year.
The company said proceeds from the ADR offering will be used to expand semiconductor manufacturing facilities in South Korea and purchase advanced chipmaking equipment, including ASML’s extreme ultraviolet (EUV) lithography systems.
The investments are intended to boost production capacity as demand for AI memory chips continues to outpace supply.
US listing could unlock higher valuations
Market analysts believe the Nasdaq listing could catalyze a valuation re-rating by increasing SK Hynix’s visibility among global investors.
Meritz Securities analyst Kim Sun-woo said in a recent research note that the ADR listing would help SK Hynix narrow its valuation gap with US-based rival Micron Technology.
Kim added that the listing could also pave the way for SK Hynix to be included in the Philadelphia Semiconductor Index, a benchmark closely tracked by global exchange-traded funds and passive investment products.
Inclusion in the index could generate additional demand for the stock through passive fund inflows while improving its standing among international investors.
Meritz Securities also expects SK Hynix to continue posting strong earnings, supported by resilient demand for AI memory chips and tight industry supply, even as overall production gradually increases through the year.
HSBC has also turned more optimistic on the stock.
Last month, the brokerage said it would raise its valuation by applying a 20% premium to its previous price-to-book multiple of 2.8 times, resulting in a revised multiple of 3.4 times.
The bank said the higher valuation reflected “more proactive shareholder-friendly initiatives and improved accessibility to global investors.”
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