SK Hynix announced on Wednesday that it intends to raise 45.45 trillion won - equivalent to $29.43 billion at an exchange rate of $1 = 1,544.1400 won - through the listing of American Depositary Receipts (ADRs) on the Nasdaq market. The amount the company hopes to raise is conditional and may be adjusted following bookbuilding, according to a regulatory filing.
The South Korea-based company, described in the filing as the world’s second-largest memory chipmaker, plans to issue 17.79 million new shares to support the ADR listing. The filing sets the targeted ADR listing date for July 10.
SK Hynix outlined how it intends to deploy the proceeds from the offering. Funds will be allocated toward construction of a chip manufacturing facility in Yongin, development of an advanced packaging fabrication plant in Cheongju, and the acquisition of chipmaking equipment, including an Extreme Ultraviolet (EUV) scanner.
The company framed the capital raise as a step to broaden its investor base while expanding production capacity for chips used in artificial intelligence applications. The filing makes clear the stated uses of proceeds and the mechanics of the intended ADR issuance, while also noting that the total amount to be raised could change after the completion of bookbuilding.
Background and mechanics
Under the plan, SK Hynix will issue 17.79 million new shares. These shares will back an ADR listing on Nasdaq, with the ADR offering scheduled for July 10. The filing emphasizes that the final size of the raise may be altered following the bookbuilding process.
Use of proceeds
- Construction of a chip factory in Yongin.
- Building an advanced packaging fab in Cheongju.
- Purchasing chipmaking equipment, including an EUV scanner.
The regulatory filing provides the details above but does not expand beyond the specified uses or provide additional financial projections. It also reiterates the currency conversion used in the announcement: $1 = 1,544.1400 won.