SK Hynix (000660.KS) said it will aim to raise roughly $28 billion in a US IPO, seeking to tap into global investors’ appetite for AI winners.
The South Korea-based memory chip manufacturer said that it will offer 17.79 million common shares on the Nasdaq, according to an SEC filing on Monday
Trading is expected to begin on Friday, according to Bloomberg and the Wall Street Journal. The company intends to use the proceeds for capital expenditures related to expanding production facilities in South Korea and acquiring extreme ultraviolet (EUV) lithography scanners, the massive machines manufacturers use to produce advanced chips. Demand for the offering has already exceeded the number of ADRs available, according to the deal terms seen by Bloomberg.
Shares of the company in South Korea slumped, as the raise would be less than the $29 billion initially indicated in late June. SK Hynix along with peers Samsung Electronics (005930.KS) and Micron Technology (MU) has been riding the AI wave over the past year as high-bandwidth memory has become a critical bottleneck in AI infrastructure. The stock has climbed more than 250% in South Korea, pushing the memory chip maker’s market capitalization above $1 trillion in May after Micron Technology (MU) reached the same milestone.