SK Hynix 51% Arbitrage Trade Hindered by Strict Conversion Cap
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SK Hynix 51% Arbitrage Trade Hindered by Strict Conversion Cap
One of the world's most attractive arbitrage opportunities will still remain unavailable. The Korea Securities Depository stated that SK Hynix has set the upper limit for converting its Korea-listed shares into US-traded American Depositary Receipts (ADRs) at 2.5% of total share capital. This news reveals a key issue that investors have been closely monitoring since the company successfully listed in the US. The CEO of the Korea Securities Depository stated that the $26.5 billion worth of American Depositary Receipts (ADRs) issued by SK Hynix on July 10 has exhausted the conversion limit. This means that unless existing ADR holders first convert their US-traded ADRs back into Korean shares, thereby freeing up conversion space, investors cannot convert Seoul-listed shares into ADRs. SK Hynix did not comment on this.
Navigating Web3 tides with focused insightsTechFlow reports, July 23, one of the world's most attractive arbitrage opportunities will still remain unavailable. The Korea Securities Depository stated that SK Hynix has set the cap for converting its Korea-listed shares into American Depositary Receipts (ADR) traded in the U.S. at 2.5% of the total share capital.
This news highlights a key issue that investors have been closely monitoring since the company successfully listed in the U.S. The CEO of the Korea Securities Depository stated that the $26.5 billion worth of American Depositary Receipts (ADR) issued by SK Hynix on July 10 have exhausted the conversion limit.
This means that unless existing ADR holders first convert their ADRs traded in the U.S. back into Korean shares, thereby freeing up conversion space, investors cannot convert shares listed in Seoul into ADRs. SK Hynix did not comment on this.
