SK Hynix Prices ADRs at $149, Raising $26.5 Billion

South Korean memory chip giant SK Hynix priced its American Depositary Receipts (ADRs) at $149 per share on Thursday, successfully raising about $26.5 billion. This significant capital infusion underscores robust investor confidence in the company's pivotal role within the artificial intelligence supply chain.

The offering comes as SK Hynix solidifies its position as a leading supplier of High Bandwidth Memory (HBM) chips, essential components powering advanced processors in global AI systems. The ADRs will trade on the Nasdaq under the ticker symbol "SKHY," with the pricing representing a 2.7% premium over the average share price of the past three trading days.

Despite a recent cooling in chip stocks due to concerns about potential slowdowns in AI spending, SK Hynix's stock rose 2.8% in early trading on Friday in Seoul. The company's decision to list ADRs in the U.S. aims to help narrow the market capitalization gap with its American competitor, Micron.

The substantial funds secured from this offering are earmarked for constructing new factories and acquiring advanced equipment. This expansion is crucial for meeting the escalating demand for AI chips, a market projected to grow significantly in the coming years. SK Hynix continues its intense competition with domestic rival Samsung Electronics for dominance in the memory chip market.

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AI demand continues to grow, currently driven by strong CPU demand from data centers, and HBM demand also remains strong, with the market size expected to grow from $65 billion this year to $120 billion next year and about $290 billion by 2030.