South Korean memory chipmaker SK Hynix on Monday launched a US share sale through American Depositary Receipts (ADRs) on Nasdaq, setting out to raise about 43.14 trillion won, or roughly $28.07 billion.

The deal marks one of the biggest equity raises in global markets this year and comes as the company seeks to capitalise on the artificial intelligence boom that has supercharged demand for advanced memory chips.

SK Hynix said it plans to issue 17.79 million new shares through the ADR programme, with 10 ADRs representing one common share.

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The market tips its hat

The offering has already attracted indications of interest from Baillie Gifford Overseas, funds managed by Coatue Management and Situational Awareness Partners, which together have signalled interest in buying up to $7 billion worth of the ADRs.

A Monday filing gave a reference price of 242,500 won per ADR, based on SK Hynix’s July 3 closing price in Seoul. The final price is due to be set on Thursday, with trading expected to begin on Friday.

The AI tide lifts another giant

SK Hynix is one of the world’s largest memory chipmakers and a major supplier of high-bandwidth memory chips used in AI systems, with customers including Nvidia and Google.

The company’s shares have surged about 260% this year, even after falling 3.4% on Monday in Seoul, while the broader KOSPI index slipped 0.5%.

Analysts say the Nasdaq listing could widen SK Hynix’s investor base and help narrow the valuation gap with US rival Micron, which already trades in the American market.

Di Zhou of Thornburg Investment Management said, “We are in the midst of a memory supercycle, with all three major suppliers – Samsung, SK Hynix, and Micron – riding the AI-driven demand wave.”

No resting on laurels just yet

SK Hynix said the proceeds will be used to build new semiconductor factories in South Korea and buy chipmaking equipment, including extreme ultraviolet scanners from Dutch supplier ASML.

The company is aiming to strengthen production capacity at a time when AI infrastructure spending remains strong, while some analysts remain cautious about how long the memory cycle can last.

Steve Sosnick, chief strategist at Interactive Brokers, said the listing will make it easier for the company “to directly access a new group of momentum-hungry investors”.

The move also reflects a broader trend of Asian chip companies turning to overseas markets as demand for AI-linked stocks stays elevated.

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FAQs

Q1: Why is SK Hynix listing on Nasdaq?

Ans: SK Hynix is listing on Nasdaq to raise funds for expanding semiconductor production and strengthen its access to U.S. investors amid growing AI-driven chip demand.

Q2: How much does SK Hynix plan to raise through its Nasdaq listing?

Ans: SK Hynix aims to raise about 43.14 trillion won (approximately $28 billion) through its American Depositary Receipt (ADR) offering.