SK Hynix, '2nd Largest Ever' Nasdaq Listing... Will it write a new history for AI stocks?

▲ SK Hynix/Source: X

If SK Hynix's Nasdaq listing is confirmed at $25.7 billion, it would rank as the second-largest stock offering ever, following SpaceX (SPCX).

According to U.S. economic media MarketWatch on July 9 (local time), SK Hynix's American Depositary Receipts (ADRs) are scheduled to be listed on Nasdaq on the 10th. If lead underwriters Goldman Sachs, Citi, Bank of America, and JPMorgan price the offering to match Seoul's closing price on the 9th, the amount raised will reach $25.7 billion.

The $25.7 billion figure surpasses the $25.6 billion raised by Saudi Aramco in 2019 and Alibaba's (BABA) $25 billion in 2014. However, it falls short of the $29 billion SK Hynix initially expected before the Korean market entered a technical bear market.

Despite stock price adjustments and extreme volatility in the Korean market, investment demand exploded. According to Bloomberg, orders for this offering were seven times the amount available. Underwriters are offering 177.9 million new shares, with 10 ADRs representing one share listed on the Seoul stock exchange. The ADR price, based on Seoul's closing price, is approximately $144.6.

Some fund managers expected an offering price discount to enhance investment attractiveness. In contrast, a London hedge fund manager believed that strong institutional demand could lead to a successful transaction without a discount, and considering U.S. investors' preference for dollar-denominated assets, ADRs could trade at a higher price than shares listed in Seoul. Major investors, including Situational Awareness, a hedge fund managed by a former OpenAI researcher, indicated an intent to purchase up to $7 billion.

SK Hynix's stock price has risen 235% this year, but its expected price-to-earnings ratio for the next 12 months is 5.5x. With demand for DRAM and NAND semiconductors outstripping supply and average selling prices continuing to rise, SK Hynix will begin trading on Nasdaq under the ticker symbol SKHY.

[Article Summary]

-SK Hynix's Nasdaq listing could raise $25.7 billion based on Seoul's closing price, making it the second-largest ever.

-Orders for this offering were seven times the amount available, and major investors indicated an intent to purchase up to $7 billion.

-SK Hynix's stock price has risen 235% this year, but its expected price-to-earnings ratio for the next 12 months is 5.5x.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*