SK Hynix has completed a successful US IPO and was able to raise 26.5 billion dollars, although that record amount is still slightly lower than hoped.
Korean memory manufacturer SK Hynix raised 26.5 billion dollars during its US IPO via Nasdaq. This debut is the most successful by a foreign company on a US exchange.
SK Hynix offered its shares via so-called American depositary receipts (ADRs). These allow non-US companies to trade their shares within the US. SK Hynix is also listed on the Korea Stock Exchange.
Record amount
Plans for the IPO via Nasdaq came to light a few days ago. SK Hynix had hoped to raise up to 29 billion dollars. The current 26.5 billion is just below that high target, but still breaks records.
SK Hynix is riding the wave of the AI boom. The company’s value is not based on promises surrounding the technology, but on a packed order book and high margins. As a memory manufacturer, SK Hynix specializes in HBM memory, which is being bought up in massive quantities to build AI chips.
The proceeds from the IPO are intended to further expand production capacity. SK Hynix plans to build new factories in Korea in the coming years, partly as part of a major investment plan that also includes Samsung.