"Move aside, Micron!"... SK hynix takes over Nasdaq, scores a 40 trillion won jackpot

[Financial News] SK hynix, which entered Nasdaq through an American Depositary Receipt (ADR), soared more than 13% on its first trading day, making a spectacular debut. The company is being credited with quickly shaking off the "Korea discount" that has long weighed on Korean memory chipmakers and proving its true value in global capital markets.
On the 10th local time, SK hynix ADR began trading at $170 on the Nasdaq market and at one point climbed as high as $177 before closing its first day at $168.49. That represented a gain of about 13.1% from the offering price. Based on the current exchange rate, the share price translates to about 2.528 million won per share, roughly 16% higher than the previous day's regular-session close of 2.18 million won on the Korea Exchange.
Based on the closing price, SK hynix's market capitalization is estimated at about $1.2 trillion. That puts it ahead of Micron, its U.S. memory chip rival, which has a market cap of $1.1 trillion. Dan Coatsworth, head of investment at AJ Bell plc, said U.S. demand was stronger than the market had expected. He added that the memory chip rally suggests the sector was not at its peak, but merely taking a breather.
The scale of the listing was also overwhelming. SK hynix's ADR offering totaled $26.5 billion, or about 40 trillion won, making it the second-largest in U.S. market history after SpaceX's $85.7 billion deal last month, which set an all-time record. Bloomberg News praised the listing as a "big hit."

Nasdaq's top leadership also did not hide its surprise. Analysts say the ADR listing could encourage more companies to consider listing on U.S. exchanges in the future.
In an interview with Bloomberg TV, Nasdaq President Nelson Griggs said, "SK hynix's 'blockbuster' listing is prompting other global companies to enter the U.S. market," adding that "there is now considerable momentum behind ADR listings." He also noted that four of this year's top 10 fundraising deals were from foreign companies.
Wall Street also welcomed the arrival of K-Semiconductor. JPMorgan Chase, the lead underwriter, celebrated SK hynix's market debut by illuminating the exterior of its headquarters at 270 Park Avenue in Manhattan, New York, with a massive display inspired by the South Korean national flag the night before the listing.
With the successful listing securing ample funding, SK hynix is expected to channel the proceeds into new facility investments and other projects. The company ended its first day of trading under the temporary ticker "SKHYV" and will switch to its official ticker, "SKHY," from the 13th to continue regular trading. The possibility of raising additional funds through more ADR issuance remains open, drawing close attention from global investors.


[email protected] Jeon Sang-il Reporter