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SK Hynix Raises $26.5 Billion in U.S. Share Sale
American depositary receipts issued by SK hynix began trading on the Nasdaq last week. The offering raised $26.5 billion, the largest by any foreign company in U.S. market history, Yonhap reported. The inflow exceeds prior currency swap support and recent foreign exchange interventions by Korean authorities.
Jul 12, 6:16 PM·1m read1 source
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American depositary receipts issued by SK hynix debuted on the Nasdaq last week. Investors valued the shares above the company's Korean listing price, allowing the chipmaker to raise $26.5 billion. Yonhap reported the amount as the largest stock offering by a foreign company in U.S.
Market history. The proceeds are expected to return largely to investments inside Korea, creating a dollar inflow comparable in scale to earlier central bank support measures. During the 2020 coronavirus pandemic, Korea secured a $60 billion currency swap line with the U.S.
Federal Reserve, of which $19.87 billion was drawn. The SK hynix amount exceeds that draw and is nearly double the $13.6 billion Korean authorities sold net in the foreign exchange market during the first quarter of this year to support the won. Korea's foreign exchange reserves stood at $427.36 billion at the end of June.
Yonhap noted that the reserves had fallen from ninth to thirteenth place globally between December of last year and May. The same report stated that Korea's foreign exchange market began operating on a 24-hour weekday basis last week. Market observers cited in the Yonhap report said the dollar inflows could reduce pressure on reserves and allow authorities to conduct smoothing operations if the won strengthens sharply.
