Memory chip giant SK Hynix plunged more in South Korea on Monday, just one trading day after its blockbuster Nasdaq debut.
Shares listed on the Korea Exchange fell as much as 13.2% as investors locked in profits following a months-long rally and the company’s closely watched US ADR listing. The event raised $26.5 billion — topping Alibaba’s IPO more than a decade ago.
SK Hynix’s American depositary receipts began trading on the Nasdaq on Friday, opening at $170 — about 14% above the $149 reference price — before ending their debut session up 12.8%.
Monday’s sell-off also came as Asian markets broadly retreated amid renewed tensions in the Middle East.
South Korea’s benchmark Kospi index dropped 6%, while rival chipmaker Samsung Electronics fell 8%. In Japan, the Nikkei 225 fell about 2% while hot memory chip stock Kioxia slumped over 11%.
Despite the sharp pullback, analysts remain broadly constructive on SK Hynix. The company’s Korea-listed stock has nearly doubled this year.
Morningstar values the company’s ADRs at $160 and its Korea-listed shares at 2.4 million won each, implying the stock is fairly valued.
“The current memory upcycle is tracking substantially stronger than expected, but our base case continues to assume normalization in cycle dynamics, limiting upside at current levels,” Morningstar analyst Lorraine Tan wrote in a note on Friday.