SK Hynix is set to list American Depositary Receipts (ADRs) valued at 45 trillion KRW (about 29.12 billion USD) on the Nasdaq stock exchange in the U.S. on July 29.
The company announced on Wednesday that its board of directors has approved the issuance of ADRs worth 45.4534 trillion KRW (about 29.4 billion USD).
This ADR issuance will involve depositing newly issued common shares with overseas depositary institutions through a third-party allocation method. Based on these deposited shares, U.S. ADRs will be issued and allocated to foreign institutional investors and other entities.
The company disclosed that each ADR will be priced at 255,500 KRW (about 165.3 USD). This figure is derived from the common stock’s closing price of 2,555,000 KRW (about 1,653 USD) on Tuesday, the day before the board’s decision. The conversion ratio is set at 0.1 common shares per ADR, with a maximum issuance limit of 17.79 million new shares.
SK Hynix plans to allocate the entire 45.4534 trillion KRW (about 29.4 billion USD) raised from this ADR listing to facility investments.
Specifically, the funds will finance the construction of the first phase of the Yongin semiconductor cluster fab. They will also support the development of the Cheongju P&T7 advanced packaging fab and cover associated equipment costs. Additionally, the capital will be used to acquire cutting-edge machinery, including extreme ultraviolet (EUV) scanners.
The subscription and payment dates are scheduled for July 14, with the ADRs to be listed on the Nasdaq Global Select Market. The expected local listing date is July 10.
The final details, including the total ADR issuance amount and the price per ADR, will be determined after a book-building process targeting overseas institutional investors. Once the fundraising amount and unit price are finalized, the company will issue an updated announcement.
Four leading global investment banks have been appointed as underwriters for the listing: Bank of America Securities, Citigroup Global Markets, Goldman Sachs Group, Inc., and J.P. Morgan Securities. The Korea Securities Depository will serve as the custodian for the underlying shares, while Citibank will manage the overseas depositary services.