SK Hynix Targets $29.4 Billion US AI Listing

This deal, if completed at the top end, represents the second-biggest share sale globally after SpaceX's $85.7 billion IPO earlier this month, surpassing Saudi Aramco's 2019 offering. The planned listing reflects strong global appetite for AI-linked equities, even amid increased volatility in U.S. tech and semiconductor markets.

SK Hynix, now valued at about $1.2 trillion, has seen its shares quadruple this year, outperforming rivals Samsung Electronics and Micron, becoming South Korea's most valuable company. Ryu Young-ho, a senior analyst at NH Investment & Securities, states the listing offers access to U.S. investors and an opportunity for re-rating in the U.S. market, which will reflect in its Korea-listed shares.

CLSA Senior Analyst Sanjeev Rana confirms expectations for a U.S. listing have already driven the stock's rally. Proceeds from the American Depositary Receipts (ADR) listing will fund new chip factories in South Korea and purchase advanced chipmaking equipment, including an extreme ultraviolet scanner from ASML.

Gary Tan, a portfolio manager at Allspring Global Investments, notes the capital raise implies limited dilution relative to mid-term capital expenditure plans. BofA Securities, Citigroup Global Markets, Goldman Sachs, and JP Morgan Securities are managing the offering.