South Korean SK Hynix 000660.KS is considering raising 10 trillion to 15 trillion won ($10.03 billion) through a possible listing in the United States to expand its production capacity for advanced memory chips, Korea Economic Daily reported.
A US listing would allow supplier Nvidia NVDA.O to access a wider pool of capital and could help reduce the gap in its valuation compared to global counterparts like Micron MU.O, according to the newspaper.
Here are some details:
– SK Hynix plans to issue new shares to support a listing of American Depositary Receipts (ADRs), with funds likely to be used to build AI infrastructure and increase memory product capacity, the newspaper cited anonymous industry sources. – The chipmaker, in a statement to Reuters, said the company was exploring various measures to enhance shareholder value, including an ADR listing, but added that nothing has been finalized. – Last week, SK Group President Chey Tae-won stated that SK Hynix was considering an ADR listing in the U.S. to broaden its investor base beyond Korea and increase exposure to global investors. – In January, SK Hynix announced the cancellation of around 12.2 trillion won of treasury shares, equivalent to 2.1% of total outstanding shares, in order to enhance shareholder value. – SK Hynix leads the high-bandwidth memory chip market used in AI, with a 57% share. It also holds a 32% share of the global DRAM memory market, used in AI chips and electronic devices, making it the second player behind rival Samsung Electronics 005930.KS, according to Counterpoint. – SK Hynix shares closed up 5.7%, compared to a 2.7% increase in the benchmark KOSPI index .KS11.
(1 $ = 1,495.0000 won)
