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SK Hynix Raises $26.5 Billion in Nasdaq ADR Offering
The South Korean chipmaker completed the U.S. listing this week. Proceeds will support domestic semiconductor investments and are expected to add dollar liquidity to local markets.
Jul 12, 12:15 AM·1m read1 source
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SK hynix Inc. raised about 40 trillion won ($26.5 billion) through an American depositary receipt offering on Nasdaq, Yonhap reported. The proceeds are scheduled to reach the company on July 13. The company plans to direct most of the funds toward domestic projects, including the Yongin semiconductor cluster.
Much of the dollar proceeds is therefore expected to be converted into won, adding supply to South Korea's foreign exchange market. Yonhap said the inflow could ease pressure on the Korean won, which has stayed weak against the dollar amid broad dollar strength and rising overseas investment by Korean firms.
An SK hynix official stated that the size and timing of the foreign exchange transactions have yet to be determined.
Market experts cited by Yonhap compared the expected inflow to the dollar liquidity provided under the $60 billion currency swap line between the Bank of Korea and the U.S. Federal Reserve during the 2020 COVID-19 market stress. Actual drawings under that facility totaled $19.87 billion.
SK Group Chairman Chey Tae-won, SK hynix CEO Kwak Noh-jung and other senior executives attended a bell-ringing ceremony in New York on July 10 to mark the Nasdaq listing.
