TechFlow News, July 10, according to Bloomberg, SK Hynix raised $26.5 billion through the issuance of American Depositary Receipts (ADR), becoming the largest initial stock offering by a foreign company in the U.S. in history. The company sold 177.9 million ADRs at a price of $149 per share, with each ADR equivalent to one-tenth of an ordinary share traded in Seoul. According to Bloomberg data, this issuance scale exceeded Alibaba Group's U.S. listing, becoming the third largest IPO in history and the largest initial public offering by a foreign enterprise in the U.S.
The issuance was oversubscribed more than 7 times, with total demand approaching $200 billion, and nearly half of the ADRs were subscribed by the top ten order accounts. Institutions such as Baillie Gifford and Coatue Management expressed subscription intentions for up to $7 billion worth of ADRs. The issuance pricing carried a premium of approximately 3% over the closing price of Korean ordinary shares, with management participating throughout the allocation. These American Depositary Receipts will begin trading in when-issued form on the Nasdaq Global Select Market on Friday under the code SKHYV, and will change to SKHY when regular trading begins on July 13.
