South Korean semiconductor powerhouse SK Hynix has officially set the pricing for a massive US market entry, aiming to raise $26.5 billion in one of the largest stock sales globally. The company plans to issue approximately 18 million shares on the Nasdaq index, leveraging the intense global demand for artificial intelligence infrastructure.
As a primary supplier of high-bandwidth memory (HBM) chips to industry leader Nvidia, SK Hynix has seen its profits surge alongside the rapid development of AI datacenters.
Despite recent market volatility and concerns regarding the long-term returns on heavy AI investment, the Nasdaq listing has attracted significant investor attention, with reports indicating the offering was oversubscribed more than seven times. While the $26.5 billion figure falls short of the $75 billion raised by SpaceX in its recent IPO, it successfully surpasses the 2019 debut of Saudi Aramco, which raised $25.6 billion, and the $21.8 billion raised by Alibaba during its New York debut.
The offering is being managed by a banking syndicate including BofA Securities, Citigroup Global Markets, Goldman Sachs (Asia), and JP Morgan Securities.
The company will utilize American depositary shares (ADS) to facilitate trading on US markets. Following the announcement, SK Hynix shares saw a 2.7% increase on the Seoul-based Kospi index. This follows a period of immense growth for the firm, which saw its market capitalization exceed $1 trillion in May, placing it among an elite group of companies alongside Samsung Electronics and Micron.
In South Korea, the company’s success has become a cultural phenomenon, with branded apparel even becoming a viral symbol of status.
Analyst MS Hwang of Counterpoint Research noted that the capital injection will support the company's objective to surpass Samsung in the memory chip sector, specifically by scaling up production volume. SK Hynix intends to direct the proceeds toward constructing a new fabrication hub in Yongin, near Seoul, and an advanced packaging facility in Cheongju.
These efforts are part of a broader, massive public-private investment initiative totaling 800 trillion won aimed at expanding South Korea's semiconductor manufacturing capabilities.
The current market focus on lucrative HBM chips has caused a ripple effect in the industry. As manufacturers prioritize these advanced components for AI servers, the resulting supply constraints for standard memory chips are driving up costs for consumer electronics, leading companies like Apple to increase pricing for devices such as MacBooks and iPads.
But Friday’s Nasdaq listing has enjoyed considerable interest, and was more than seven times oversubscribed, according to US media. Funds from its US listing can support such a goal.
The Asian semiconductor giant plans to issue the equivalent of about 18m shares on Wall Street’s tech-heavy Nasdaq index later in the day.
Tech stocks have tumbled in recent weeks on fears of overheated valuations – SK hynix has soared more than 220% this year in Seoul – and concerns about when the enormous global AI spending will reap returns.
