"Surpassing Samsung, Entering Nasdaq"...SK Hynix, will its 700% surge continue?

▲ SK Hynix (SK Hynix)/AI Generated Image

SK Hynix is set to list on Nasdaq with a valuation of approximately $29 billion, riding on the artificial intelligence memory boom. With its stock price having surged over 700% in the past year, it remains to be seen whether its entry into the U.S. stock market will narrow the valuation gap with Micron.

According to crypto media outlet BeInCrypto on July 6 (local time), SK Hynix is pursuing a Nasdaq listing worth approximately $29 billion this week. It plans to sell 17.79 million new shares, with trading expected to begin on Friday. One common share of SK Hynix will be represented by 10 American Depositary Shares (ADS).

The management will embark on a roadshow for global investors this week. The New York listing price will be finalized on Thursday, with trading set to commence the following day. BeInCrypto anticipates that this listing will be the largest initial sale of shares by a foreign company on the U.S. stock market in history.

The offering size could rank as the second largest ever. Only SpaceX's IPO, which raised $85.7 billion last month, surpasses SK Hynix. It also exceeds Saudi Aramco's $25.6 billion IPO recorded in 2019.

SK Hynix supplies high-bandwidth memory chips to artificial intelligence customers like Nvidia and Google. Benefiting from increased investment in AI infrastructure, it has outperformed Samsung Electronics and Micron Technology in stock performance. SK Hynix's stock, listed on the Korean stock exchange, has risen over 700% in the past year, and last month, its market capitalization temporarily surpassed Samsung Electronics for the first time since 2000.

SK Hynix has historically been valued lower than its U.S. competitor, Micron. The Nasdaq listing is presented as an opportunity to gain direct access to the world's largest stock market and join the trend of AI investments driving the S&P 500's rise. The listing price to be finalized on Thursday and the first day of trading on Friday will be a test of U.S. investors' demand for AI memory investments.

[Article Key Summary]

-SK Hynix is pursuing a Nasdaq listing worth approximately $29 billion and will sell 17.79 million new shares.

-The offering size could rank as the second largest ever, following SpaceX, which raised $85.7 billion last month.

-SK Hynix's stock price has risen over 700% in the past year, and its Nasdaq listing's potential to narrow the valuation gap with Micron is drawing attention.

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