South Korean chipmaker SK Hynix shares surged after announcing a $29 billion US listing. Analysts believe the listing will boost valuation through capacity expansion and attracting more foreign investors.
Early Thursday, SK Hynix shares soared 12%, driving the benchmark KOSPI index up over 5%. Meanwhile, rival memory chip maker Micron Technology (1048.51, -3.26, -0.31%) reported quarterly sales forecasts far above Wall Street expectations, and its shares also rose nearly 6%.
Over the past 12 months, SK Hynix shares on the Seoul stock exchange have risen over 800%, pushing the company's market cap above $1 trillion. The company expects its ADRs to start trading on July 10 and plans to use the proceeds to build new capacity and purchase EUV lithography equipment.
According to compiled data, at the proposed size, SK Hynix's ADR offering would rank among the top three largest initial share offerings ever, comparable in size to Saudi Aramco's $29.4 billion IPO in 2019 based on exchange rates.
