SK Hynix Inc. shares surged after the memory chipmaker unveiled its plan for a $29 billion US listing, a move that analysts viewed as boosting valuations through capacity expansion and greater foreign investor access.
The stock jumped as much as 12% in early Thursday trading, before trimming its advance to around 8%. Samsung Electronics Co. also rallied after memory chip rival Micron Technology Inc posted quarterly sales forecast that crushed Wall Street estimates. The two chip heavyweight’s moves helped drive the Kospi Index up by 6%.
SK Hynix is seeking 45.45 trillion won in a US listing after its Seoul-traded stock climbed more than 800% in the past 12 months, lifting the company’s market value above $1 trillion. The company expects the American depositary receipts to begin trading on July 10 and intends to use the proceeds for the building of additional capacity and buying extreme ultraviolet lithography machines.
The planned US debut has been a much-awaited event for global money managers, who longed for easier, direct access to the leading supplier of high-bandwidth memory. Positioned at the heart of the AI supply chain, its coveted product drove a rally in its stock and triggered massive inflows into leveraged exchange-traded funds listed at home and overseas tracking its performance.
