Investing.com — SK Hynix’s American depositary receipts jumped 14% in their Nasdaq debut on Friday, extending investor enthusiasm for AI-linked chipmakers after the company raised $26.5 billion in a record U.S. share sale.
ADR shares opened at $170, well above their offering price of $149. The ADRs traded roughly 17% premium to the Seoul-listed shares, partly due to limits on converting the South Korean stock into ADRs.
The Nasdaq listing comes as semiconductor stocks have lost momentum in recent weeks amid concerns that spending on AI infrastructure could slow after a prolonged rally. Despite the recent weakness, SK Hynix shares remain up roughly 650% from a year ago, underscoring investor enthusiasm for companies seen as major beneficiaries of the AI boom.
“Investors are keeping a close eye on South Korea’s SK Hynix as it prepares to list in the US later today. Interest is strong, with reports indicating that the listing is more than seven times oversubscribed. The company has become one of the biggest beneficiaries of the global memory chip shortage and growing demand for artificial intelligence infrastructure,” said David Morrison, Senior Market Analyst at Trade Nation.
The company sold American Depositary Receipts at $149 each, raising $26.5 billion in the second-largest U.S. share sale after Elon Musk’s SpaceX’s record IPO last month.
Wider investor base
The offering gives SK Hynix direct access to the world’s largest investor base while providing capital to fund new manufacturing facilities as demand for high-bandwidth memory chips used in AI servers continues to grow.
Investor interest is already extending beyond the listing itself. At least 10 fund managers, including major ETF issuers Direxion and ProShares, have filed registrations to launch single-stock exchange-traded funds tracking SK Hynix shortly after the company begins trading in the United States, according to regulatory filings.
SK Hynix’s blockbuster U.S. listing could pave the way for more Asian technology companies to tap American investors, ending a prolonged lull in ADR offerings. Japan’s Kioxia Holdings is also preparing a U.S. listing after its shares surged more than 2,900% over the past year.
The memory chipmaker plans to use the proceeds to expand production capacity and purchase additional extreme ultraviolet (EUV) lithography machines, according to regulatory filings.
SK Hynix shares closed 2.2% higher in Seoul on Friday before the U.S. debut.
