Chey Tae-won, Chairman of SK Group. Seoul Economic Daily DB
SK hynix (000660.KS) has set its offering price at $149 per share ahead of listing American depositary receipts (ADRs) on the Nasdaq market on the 10th, Bloomberg reported on the 9th.
The $149 price is 3.1% higher than the ADR-equivalent value of SK hynix’s common shares, which closed at 2.186 million won (about $1,445) on the KOSPI market that day. According to a filing with the U.S. Securities and Exchange Commission (SEC), one ADR corresponds to one-tenth of an SK hynix common share.
If the offering price is confirmed at $149, SK hynix’s initial public offering (IPO) proceeds would reach $26.5 billion (about 40 trillion won). This would surpass China’s Alibaba, which raised $25 billion in 2014, making it the largest IPO ever by a foreign company listing on the U.S. stock market. However, it falls somewhat short of the $29 billion (about 45 trillion won) that Wall Street had initially projected.
Bloomberg, citing sources, reported that the offering terms have not yet been finalized and could still change. The news agency also reported the previous day that SK hynix’s ADR bookbuilding drew subscriptions exceeding seven times the offering volume. Among the participants, Baillie Gifford, Coatue Management, and Situational Awareness reportedly expressed intentions to invest up to $7 billion.