technology
SK Hynix Sells $26.5 Billion in ADRs at $149 Each, Shares Open at $170
The South Korean chipmaker sold 177.9 million American depositary receipts at $149 each. Demand reached roughly seven times the shares offered, and trading began at a 14 percent premium.
Jul 10, 11:45 AM·1m read1 source
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SK Hynix sold 177.9 million American depositary receipts at $149 each, raising $26.5 billion, @zerohedge reported. The offering drew demand for about seven times the shares available. Each ADR represents one-tenth of a Seoul-listed common share.
The temporary trading symbol SKHYV will change to SKHY when regular-way trading starts next Monday. Shares opened at $170, 14 percent above the offering price. Indications ahead of the open had pointed to levels as high as $181, or 22 percent above the sale price.
The shares were priced at a 3 percent premium to Thursday's close of the ordinary shares in South Korea. Baillie Gifford, Coatue Management, and Situational Awareness Partners received about $5 billion of the ADRs. More than 500 institutional investors placed orders, including long-only funds, technology specialists, and sovereign wealth funds.
Ten investors took half the deal, and the top 25 accounted for about two-thirds. Chairman Chey Tae-won told Bloomberg that demand will be exponentially growing in the future and requires a better return. He added that the company must first keep the stock price stable before seeking long-run upside potential.
Thornburg Investment Management analyst Di Zhou said the market is in a memory super cycle with strong fundamentals and described SK Hynix as one of the highest-quality pure-play memory players globally. @zerohedge reported that Bloomberg expects ProShares, Leverage Shares, and Rex Shares to plan products offering 2x daily returns on the ADRs.
