SK Hynix announced on 24th June a 45.4 trillion won (approximately $33bn) third-party allotment rights issue, designed to support the issuance of American Depositary Receipts (ADRs) in preparation for a Nasdaq listing.
The offering covers 17.79 million new shares priced at 2,555,000 won each — a discount of roughly 2.5% to the closing price on the day of announcement. The ADR price has been set at 255,500 won, equivalent to 10% of the issuance price.
The bookbuilding process begins on 6th July, with the final offering price to be confirmed on 10th July — the same day Nasdaq trading is scheduled to commence. Subscription and payment by investors will run from 13th to 20th July, with investor settlement on 14th July and new shares taking effect on 15th July. The additional listing on the Korea Exchange is set for 29th July. Specific payment and delivery dates, as well as the final issuance price, remain subject to revision.
The entire 45.4 trillion won raised will be directed towards capital expenditure. The company plans to allocate 31 trillion won to its first-phase semiconductor complex in Yongin, south of Seoul, 19 trillion won to packaging and testing facilities in Cheongju, and 12 trillion won to acquiring extreme ultraviolet (EUV) lithography equipment. Any funding shortfall will be covered by operating cash flows.
IBK Securities, a South Korean brokerage, has interpreted the rights issue as an additional tool for shareholder returns, supplementing the company's existing share buyback and dividend programmes. The firm argued that a Nasdaq listing would increase the likelihood of SK Hynix being included in the Philadelphia Semiconductor Index — a key benchmark for the global chip industry — and that direct comparison with Micron Technology, the leading American memory chipmaker, could prompt investors to assign a higher valuation multiple to the South Korean company's shares.