TechFlow news, July 15, according to Cailianshe, SK Hynix American Depositary Receipts (ADR) have been listed for only three days, yet the premium relative to the company's South Korea-listed stocks has surged to over 50%. These ADRs rose 27% on Tuesday, not only recovering the previous day's 9.3% decline but also extending gains significantly. Data shows this brings their premium relative to ordinary shares on the Seoul market to as high as 51%, far higher than the 3% premium at the time of last week's $26.5 billion ADR issuance pricing.
According to documents filed with the U.S. Securities and Exchange Commission, each SK Hynix ADR is equivalent to one-tenth of an ordinary share. Due to restrictions on converting ordinary shares into ADRs, these ADRs were expected to command a premium. Meanwhile, options on SK Hynix ADRs also began trading on U.S. options exchanges on Tuesday, making it easier for investors in the world's largest derivatives market to bet on the volatile South Korean memory chip manufacturer.
