One of the most attractive arbitrage opportunities in the world remains unattainable. The Korea Securities Depository (KSD) announced that SK Hynix has set the upper limit for the conversion of its Korea-listed shares into American Depositary Receipts (ADR) traded in the United States at 2.5% of its total shares. This news sheds light on a key issue that investors have been closely monitoring since the company successfully listed in the US. The CEO of the Korea Securities Depository stated that

One of the world's most attractive arbitrage opportunities will remain unattainable. The Korea Securities Depository has stated that SK Hynix has set the cap for converting its Korea-listed shares into US-traded American Depositary Receipts (ADR) at 2.5% of its total shares. This announcement sheds light on a key issue that investors have closely monitored since the company’s successful listing in the United States. The CEO of the Korea Securities Depository said that the $26.5 billion of ADRs issued by SK Hynix on July 10 have already reached the issuance limit. This means that unless existing ADR holders first convert their US-traded ADRs back into Korean shares, freeing up issuance capacity, investors will not be able to convert Seoul-listed shares into ADRs. SK Hynix has not commented on the matter.