South Korean memory chip giant SK Hynix is taking its artificial intelligence success story directly to Wall Street, launching a massive $28.07 billion American depositary receipt (ADR) offering on the Nasdaq in one of the largest equity sales ever by a technology company.
According to a new SEC filing, the company plans to raise 43 trillion won, or about $28.07 billion, by issuing 17.79 million new shares through ADRs, giving U.S. investors easier access to one of the world's biggest beneficiaries of the AI infrastructure boom.
The offering comes as demand for high-bandwidth memory chips used in AI systems continues to surge, helping propel SK Hynix into the top tier of global semiconductor companies. Under the transaction, 10 ADRs will represent one common share. The reference price was set using the company's July 3 closing price in Seoul, with the final offering price expected later this week before trading begins on Nasdaq.
The deal has already attracted strong interest from institutional investors. Investment firm Baillie Gifford Overseas, funds managed by Coatue Management, and Situational Awareness Partners have separately expressed interest in purchasing up to a combined $7 billion worth of the ADRs, according to the company's regulatory filings.
The fundraising reflects the extraordinary investor appetite for companies supplying critical AI hardware. SK Hynix has become one of the primary suppliers of advanced memory chips used in AI accelerators, particularly those powering graphics processors from companies such as Nvidia.
Despite a 3.4% decline in its Seoul-listed shares on Monday amid broader concerns over semiconductor valuations, SK Hynix stock remains up roughly 260% this year. The U.S. listing could help narrow the valuation gap between SK Hynix and American semiconductor peers by making the stock more accessible to global investors.
"We are in the midst of a memory super cycle, with all three major suppliers, Samsung, SK Hynix and Micron, riding the AI-driven demand wave," Di Zhou, portfolio manager at Thornburg Investment Management, told Reuters. Zhou added that broadening the company's investor base through a U.S. listing could reduce its valuation discount relative to American rival Micron Technology.
The company said it intends to use the money to build additional semiconductor fabrication plants in South Korea and purchase advanced manufacturing equipment, including extreme ultraviolet lithography systems produced by Dutch chip equipment leader ASML. The offering also aligns with South Korea's broader effort to strengthen its leadership in semiconductors and artificial intelligence.
Last week, the government unveiled a sweeping industrial strategy centered on AI and chip manufacturing, including a 576 trillion won investment initiative aimed at expanding semiconductor production and supporting next-generation technologies.
President Lee Jae Myung has urged officials to accelerate permitting, land acquisition and infrastructure development to ensure the country maintains its competitive edge in advanced industries. If completed as planned, the transaction will rank among the largest share sales ever conducted globally, trailing only a handful of mega offerings.
