NVIDIA supplier SK Hynix eyes $28B US listing
What's the story
South Korean chipmaker SK Hynix is gearing up for a massive $28 billion US listing, according to its regulatory filings. The move comes as part of one of the largest new share offerings globally, capitalizing on the current AI boom. The company will offer depositary receipts backed by 17.79 million new shares in a NASDAQ listing, making it one of the most valuable tech companies in the world.
Market performance
SK Hynix shares surge 273% this year
SK Hynix's shares have been on a roll, trading 1% higher and surging about 273% this year. The company's stellar performance is largely attributed to the growing global investor interest in AI stocks. The final price for the New York listing will be determined on Thursday, with trading expected to start on Friday.
Historic offering
Second largest share sale in history
The upcoming listing is set to be the second-largest share sale in history, after SpaceX's record $85.7 billion IPO last month. It will surpass Saudi Aramco's $25.6 billion IPO in 2019 and Alibaba's similar-sized offering in 2014. SK Hynix is a major supplier of high-bandwidth memory chips for AI systems used by tech giants like NVIDIA and Google.
Future plans
SK Hynix's $64.38B investment to build new chip plants
Last week, SK Hynix announced a whopping 100 trillion won (around $64.38 billion) investment to build new chip plants. This includes a facility for the NAND flash memory. The move is part of a larger South Korean investment push to distribute the benefits of the AI boom across the country.