South Korean memory chip maker SK Hynix Inc. is aiming to set the price for its proposed U.S. American depositary receipt (ADR) listing at $149 per ADR, according to people familiar with the matter. Under the structure disclosed in a U.S. regulatory filing, each ADR would represent one-tenth of a SK Hynix common share.
The $149 target places the ADR at roughly a 3.1% premium to the company’s most recent closing price on the Seoul exchange. On Thursday, SK Hynix common shares closed at 218,600 won, which is approximately $144.50 on a per-ADR equivalent basis.
If the offering goes forward at the proposed price and size, it would carry significant scale. Market participants noted that at $149 per ADR the sale would be large enough to qualify as the biggest first-time share sale in the U.S. by a foreign issuer. That outcome would exceed the size of Alibaba Group Holding Ltd.’s noted $25 billion debut in the U.S., altering the ranking of large international technology listings in New York.
The proposed timing and final size of the U.S. listing have not been locked in. Sources familiar with the talks cautioned that negotiations are ongoing and that terms could shift before any final decision. SK Hynix has not provided a comment in response to requests.
Quick breakdown - the numbers
| Metric | Details |
|---|---|
| Proposed ADR Price | $149.00 |
| ADR-to-Common Ratio | 10 ADRs = 1 Common Share |
| Implied Common Share Price (US$) | $1,490.00 |
| Seoul Closing Price (Thursday) | 218,600 won (~$144.50 per ADR equivalent) |
| Premium to Domestic Market | ~3.1% |
The company’s position as a major supplier of High Bandwidth Memory (HBM) chips, which are used in leading artificial intelligence processors, was highlighted as a rationale for pursuing a U.S. listing while demand for AI infrastructure remains strong.
The situation remains fluid. Interested parties and potential investors should note that the particulars reported at this stage - including the $149 target, the ADR ratio, and the prospective record-setting size of the sale - are subject to change as discussions progress.
Key points
- SK Hynix is targeting $149 per ADR for a proposed U.S. listing, with one ADR equal to one-tenth of a common share.
- At that price, the offering would be roughly 3.1% above the Seoul closing price on Thursday and could become the largest first-time share sale in the U.S. by a foreign issuer if finalized.
- The company’s role as a leading supplier of HBM chips ties the timing of the listing to elevated global demand for AI hardware, a factor cited in discussions about the move.
Risks and uncertainties
- Terms are not final - The pricing, timing, and size of the U.S. listing are still under negotiation and could change, affecting valuation and market reception.
- Market reaction - A modest premium to the domestic share price does not guarantee demand; investor appetite in the U.S. remains an uncertainty until the deal is finalized.
- Company comment pending - SK Hynix has not publicly commented, leaving details and official confirmation outstanding.
These points should be considered by investors and market observers tracking cross-border equity issuance, semiconductor sector capital markets activity, and listings by large foreign technology companies.