SK Hynix's $28B US share sale draws 7x investor demand
What's the story
SK Hynix, a leading South Korean memory chipmaker, has witnessed an overwhelming response to its proposed $28 billion share sale in the US. The demand for the offering exceeded the number of shares on offer by more than seven times, Reuters reported. The strong investor response underscores a robust appetite for companies involved in the global artificial intelligence (AI) supply chain.
Funding details
Funds to be used for new factories, equipment production
The funds from the share sale will be used by SK Hynix to build new factories and produce equipment. This is part of the company's plan to ramp up production in response to the skyrocketing demand for AI chips. The offering is likely to be the second-largest share sale in history, after SpaceX's record-setting $85.7 billion IPO last month.
Market response
SK Hynix's stock up nearly 680% over past year
The news of the share sale has already boosted SK Hynix's shares by some six percent in morning trade. However, despite a recent correction of about 25% over the last two weeks, the stock is still up nearly 680% over the past year. This is largely due to its position as a top supplier of high-bandwidth memory (HBM) chips for NVIDIA, further solidifying its role in the AI hardware ecosystem.