SK Hynix raises $26.5B in largest foreign IPO in US history

South Korean memory chip giant SK Hynix made its Wall Street debut on Friday, raising $26.5 billion in the largest-ever U.S. initial public offering by a foreign company, surpassing Alibaba's $25 billion IPO in 2014 Source: AP News. The company sold 177.9 million American depositary receipts (ADRs) at $149 each, with the offering more than seven times oversubscribed Source: Tom's Hardware. The listing gives U.S. investors direct access to the AI memory chip boom, as SK Hynix is the leading supplier of high-bandwidth memory (HBM) used in Nvidia's AI accelerators Source: The Verge.

Market Reception

The stock opened at $170 per share, up 14% from its IPO price, with demand from over 500 investment firms Source: The Verge. Analysts see the listing as a test of investor faith in the AI trade amid recent volatility Source: CNA. Options on SK Hynix are expected to begin trading two business days after the debut, with Cboe and Nasdaq preparing to list them Source: CNA.

Use of Proceeds

SK Hynix will use the funds to expand manufacturing capacity, including a new fab at the Yongin semiconductor cluster and an advanced packaging facility in Cheongju, South Korea Source: Tom's Hardware. It is also building its first U.S. production site in West Lafayette, Indiana, which is eligible for up to $458 million in CHIPS Act grants Source: Tom's Hardware. The company's entire 2026 output of HBM, DRAM, and NAND is already sold out, with supply constraints expected to extend into 2027 Source: Tom's Hardware.

Valuation and Korea Discount

SK Hynix briefly surpassed Samsung as South Korea's most valuable company in late June, reaching a market cap of over $1 trillion Source: The Verge. Despite its leadership in HBM, SK Hynix trades at a lower forward P/E (4.8x) compared to U.S. rival Micron (6.6x), illustrating the "Korea discount" Source: CNBC. The Nasdaq listing is expected to help narrow that gap by improving access for U.S. investors and subjecting the company to stricter governance standards Source: CNBC.