SK Hynix is planning to go public in the US in the form of ADRs to expand its memory chip production capacity through fundraising
BlockBeats News, March 23rd. According to the Korea Economic Daily, SK Hynix is moving forward with a plan to go public in the United States in the form of American Depositary Receipts (ADR) by issuing new shares. As the cancellation of treasury stocks (self-owned stocks) was completed last month, and there are currently no available treasury stocks, the company has chosen to issue new shares. Through this financing, SK Hynix plans to expand the production capacity of cutting-edge storage chips such as High Bandwidth Memory (HBM) and further strengthen its dominant position in the global Artificial Intelligence (AI) semiconductor market.
SK Hynix has essentially decided to issue new shares for ADR listing, with the scale expected to be approximately 2.4% of the total shares, equivalent to the proportion of the previously canceled treasury stocks. The company had originally considered using its held treasury stocks (about 2.4%) to push for ADR listing, but due to market concerns that it might be seen as an attempt to circumvent the obligation to cancel treasury stocks, the company promptly canceled 2.1% (about 12.24 trillion Korean won) of treasury stocks on March 9th.
The market expects that SK Hynix will raise the equivalent of about 10 trillion to 15 trillion Korean won in USD funds through this new share issuance. This funding will be mainly used for AI infrastructure investments, including semiconductor cluster construction (with a total scale of about 60 trillion Korean won). Industry insiders state that the company is still balancing shareholder reactions and market sentiment regarding the scale of the new share issuance and do not rule out the possibility of further expanding the financing scale in the future.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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