SK Hynix eyes $26.5B US listing amid AI chip surge
What's the story
South Korea's memory chip manufacturer, SK Hynix, has announced its mega US listing. The company is looking to raise $26.5 billion through this move, capitalizing on the ongoing artificial intelligence (AI) boom. The Asian semiconductor giant plans to list some 18 million shares on Nasdaq later today.
Profit growth
SK Hynix's profits surge due to AI datacenters
SK Hynix, a supplier of advanced memory chips to tech giants like NVIDIA, has witnessed a massive surge in profits. The company's financial growth is largely attributed to the global race for building AI datacenters. Despite recent declines in tech stocks over fears of inflated valuations and concerns over returns from global AI spending, SK Hynix's Nasdaq listing has seen considerable interest.
Listing details
Nasdaq listing oversubscribed more than 7 times
The interest in SK Hynix's Nasdaq listing has been phenomenal, with the offering being oversubscribed more than seven times. The company will be listing through American depositary shares (ADS), which let fractions of foreign companies trade on US public markets. Each of the 177.9 million depositary shares, which represent one-10th of a regular share, has been priced at an initial public offering price of $149 per ADS.
Future plans
Funds will be used for various projects, says SK Hynix
SK Hynix has revealed that it intends to use the funds from its US listing for various projects. These include building the first fabrication facility at a new semiconductor cluster in Yongin near Seoul and an advanced packaging facility in Cheongju, among others. The company is also part of a massive public-private investment of 800 trillion won to establish a new chip hub in southwest South Korea with Samsung.