SK Hynix to Raise $28 Billion in Nasdaq Listing
SK Hynix, a leader in AI memory chip production, is set to issue 17.8 million new common shares through American depositary shares, anticipating to raise approximately $28 billion in net proceeds. This stock offering will be listed on the Nasdaq on July 10, 2023, making the stock more accessible to U.S. investors.
The funds will primarily support capital expenditures aimed at expanding production capacity at its Yongin complex and establishing an advanced packaging facility in Cheongju, South Korea. With a market share of 56.4% in high-bandwidth memory (HBM) globally, SK Hynix is positioned to capitalize on the growing demand for memory products, projected to grow at a compound annual rate of 86% in the semiconductor segment by 2027.
Notably, the offering has attracted interest from prominent institutional investors, including Baillie Gifford and Coatue Management, who have indicated a non-binding interest of up to $7 billion in shares. As SK Hynix prepares to leverage this capital for significant expansion, it aims to build on its already commanding presence in the AI semiconductor market.
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