Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] SK Hynix is moving to list American Depositary Receipts (ADRs) in the United States to enhance global investor access and secure funding for its artificial intelligence (AI) semiconductor expansion, though concerns are emerging over potential shareholder dilution.

The company said on March 25 that it plans to issue new shares and list ADRs in the U.S., having confidentially submitted a registration statement (Form F-1) to the U.S. Securities and Exchange Commission (SEC) on March 24.

ADRs allow foreign companies to trade shares on U.S. exchanges by issuing certificates backed by underlying shares held in their home country, enabling investors to trade them similarly to domestic U.S. equities.

The planned listing is aimed at diversifying funding channels in global capital markets and achieving a potential re-rating of the company’s valuation. SK Hynix is seeking to secure large-scale capital to maintain leadership in the AI semiconductor market, particularly in high-bandwidth memory (HBM), which requires substantial capital investment.

The move is also seen as an effort to be valued on par with U.S.-listed competitors such as Micron Technology.

SK Hynix shares rose about 3.7% on the news, trading at around 1.02 million won.

However, some market participants have raised concerns that the capital-raising plan could dilute the value of existing shareholders’ stakes. Critics also question the necessity of issuing new shares given the company’s strong cash position.

According to its latest annual report, SK Hynix held 34.9 trillion won in cash and cash equivalents as of the end of last year, up 146.8% from a year earlier and exceeding its total borrowings of 22.2 trillion won by more than 12 trillion won.

 

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]