SK Hynix raised $26.5 billion in the largest U.S. IPO by a foreign company, selling 177.9 million American Depositary Shares (ADS) at $149 each. The offering saw demand seven times the available shares and will debut on Nasdaq under the ticker SKHYV. This IPO eclipses Alibaba’s previous U.S. listing.
As a key supplier to Nvidia, SK Hynix aims to expand its manufacturing capacity amid soaring demand for memory chips driven by AI advancements. Over the past year, the company’s shares have surged 634% in South Korea. However, the memory industry has entered a bear market, and a global shortage of high-bandwidth memory (HBM) and storage chips could persist until 2030 due to lengthy manufacturing setup times.
Major competitors in this space include Micron and Samsung, and current trends suggest a potential boom-bust cycle in the memory market, despite long-term agreements Micron has established with customers.
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