SK Hynix plans U.S. share sale to raise up to $28 billion

South Korean memory chipmaker SK Hynix plans to sell nearly 17.8 million shares through American depositary receipts in a U.S. offering, the company said Monday. Each receipt will represent one-tenth of a common share. The offering is scheduled to price on Thursday and begin trading on Friday.

Offering details Based on the company's closing share price in Seoul last Friday, the sale could raise around $28 billion if completed at that level, Bloomberg reported. The receipts will allow U.S. investors to purchase the foreign stock without trading directly on an overseas exchange.

Revenue and market context The company reported first-quarter revenue nearly 200 percent higher than the same quarter last year. Its shares have risen about 260 percent so far this year. Demand for memory chips used in AI systems has exceeded supply, creating shortages of high-bandwidth memory, DRAM, and NAND chips.

South Korean technology companies led by SK Hynix and Samsung have pledged more than $550 billion to expand manufacturing capacity.