[Edaily Reporter KIM YOON-JEONG ] Ahead of its listing on the U.S. Nasdaq, SK hynix has set the offering price for its American Depositary Receipts (ADRs) at $149 per share. The offering size is approximately $28 billion (about 43 trillion won), marking the largest initial public offering (IPO) by a foreign company in U.S. history. While the market views this as confirmation of strong interest from global investors, attention is now focused on whether the premium that will form in the U.S. market will extend to the company’s domestic shares.

As of 2:02 p.m. that day, SK hynix(000660)was trading at 2.26 million won, up 74,000 won (3.39%) from the previous close.

◇“Premium Pricing” 2.9% Higher Than Underlying Shares… Institutional Orders Flooded In
Earlier, on the 9th (local time), SK hynix announced via its English-language website that it had finalized the offering price for its American Depositary Receipts (ADRs) at $149 per share. The offering consists of 177.9 million ADRs, with 10 ADSs equivalent to one domestic common share. In terms of common shares, this amounts to the issuance of 17.79 million new shares.
The finalized offering price is approximately 2.9% higher than the converted price based on the closing price of the Korean stock market on the 9th. Generally, in large-scale IPOs, companies often offer shares at a discount to the existing stock price to attract investors. However, SK hynix successfully achieved “premium pricing,” setting the price above its existing stock price. The market interprets this as a result of global investors highly valuing the growth potential of the artificial intelligence (AI) memory market and SK hynix’s corporate value.
In fact, the offering is reported to have been a success, with orders from institutional investors exceeding the offering volume by more than seven times. Investment demand came primarily from global long-term investment funds, technology-focused funds, sovereign wealth funds, and Asia-focused investment institutions.
SK hynix ADRs will begin conditional (when-issued) trading on the Nasdaq Global Select Market on the 10th (local time) under the ticker symbol “SKHYV.” Regular trading will then commence on the 13th under the ticker symbol “SKHY,” and the public offering process is scheduled to conclude on the 14th.
This listing is expected to be the largest by a Korean company on the U.S. stock market and the largest-ever IPO by a foreign company in the U.S. SK hynix plans to use the proceeds to expand production capacity to meet growing demand for AI memory and to invest in state-of-the-art semiconductor production facilities.

◇“Expectations for a Revaluation Like TSMC’s”… Expanded Access for U.S. Investors and Anticipation of a Revaluation of the Domestic Shares
The securities industry views this ADR listing not merely as a fundraising event, but as an opportunity to expand the base of global investors and reevaluate the company’s value. There is an expectation that the price formed in the U.S. market could gradually be reflected in the domestic shares as well.
Kim Dong-won, head of the Research Center at KB Securities, stated in a report released this morning, “We expect that the ADR listing will expand access for global investors and lead to a simultaneous revaluation of both the U.S. ADRs and the underlying Korean shares in the future.”
Citing the example of TSMC, which listed its ADRs in the U.S. in 1997, he explained, “Based on the expansion of the global investor base, the ADRs traded at a premium to the underlying shares, and during this process, there was sustained demand for conversion and arbitrage trading that took advantage of the price difference between the underlying shares and the ADRs.” He continued, “Consequently, a virtuous cycle in which both the Taiwanese common stock and the U.S. ADRs were revalued was reinforced,” adding, “It is highly likely that SK hynix will also see a trend of revaluation between its U.S. ADRs and Korean common stock in the future, as the scarcity value of Korean memory semiconductor stocks is expected to be significantly highlighted.”
There is also an assessment that the dilution burden on existing shareholders resulting from the new share issuance will be limited. Lee Jong-hyung, Head of the Research Center at KIWOOM Securities, analyzed, “Although the ADR listing is accompanied by a 2.5% rights offering, it does not represent a significant proportion,” adding, “Once listed in the U.S., there will likely be more positive effects when considering factors such as valuation comparisons with local U.S. companies.”
◇ Analysis: “For the U.S. Premium to Extend to Domestic Shares… Conversion Flexibility Is Key”
However, some analysts are taking a cautious stance, noting that even if a premium forms in the U.S. market, it remains to be seen whether the domestic common stock will be revalued by the same margin. This is because factors such as the structure of converting common stock into ADSs to increase supply, as well as the flexibility of the conversion volume, could all influence the outcome alongside demand from U.S. investors.
Shinhan Investment Securities also cited the TSMC case in a report published the previous day. TSMC ADSs have long traded at a higher price in the U.S. market than the Taiwanese common stock. The average premium was 3.2% from 2010 to 2019, but expanded to 7.4% from 2020 to 2023, and has risen to an average of 19.1% since 2024. It has remained at an average of 17.5% so far this year.
The report analyzed that this premium is the result of strong demand from U.S. investors combined with supply constraints on ADSs. It explained that even if U.S. demand is strong, if there are constraints in the process of converting underlying shares into ADSs for supply, the price difference cannot be quickly resolved through arbitrage alone, allowing the premium to persist.
The conversion structure was also cited as a factor explaining the price difference. While TSMC can cancel ADSs to redeem the underlying shares in Taiwan (U.S. → Taiwan), the reverse process—depositing the underlying shares in Taiwan to issue new ADSs (Taiwan → U.S.)—is subject to approved volume limits and regulatory constraints. Consequently, even if the ADS price rises in the U.S. market, it is difficult to conduct unlimited arbitrage by purchasing Taiwan-listed shares to issue new ADSs; during periods of high U.S. demand, the supply of ADSs could not increase sufficiently, allowing the price premium to persist.
Noh Dong-gil, an analyst at Shinhan Investment Securities, noted, “SK hynix also does not have a structure that allows for completely free conversion between its domestic shares and ADSs,” but added, “Based on publicly available information alone, it is difficult to confirm the existence of strict regulatory caps similar to those at TSMC.” He further explained, “While the likelihood of an initial premium is high, it is difficult to immediately conclude that this will lead to the entrenchment of a TSMC-style structural premium.” The implication is that the elasticity of the volume converted from common stock to ADS will be the key variable determining the extent to which the premium formed in the U.S. market is reflected in the domestic common stock.