Board approved the move Wednesday

Final proceeds to be set after bookbuilding

Issuance pushed to maximum limit while preserving SK Square's holding company status

Funds earmarked for Yongin semiconductor cluster and Cheongju P&T7 packaging fab

SK Hynix [Yonhap]
SK Hynix [Yonhap]

SK Hynix will list American depositary receipts on the Nasdaq on July 10, with the offering expected to raise more than 45 trillion won ($29.3 billion) based on the current share price.

The company said Wednesday its board had approved the issuance of 17.79 million new shares to be listed on the Nasdaq Stock Market in the form of ADRs. The listing is scheduled for July 10.

BofA Merrill Lynch, Citigroup Global Markets, Goldman Sachs and JPMorgan are serving as underwriters.

At the current share price, the offering would raise 45.45 trillion won. The final issue price will be determined after a bookbuilding process targeting overseas institutional investors.

SK Hynix sized the new share issuance at effectively the maximum level while keeping parent company SK Square's holding company status intact. To maintain a 20 percent stake, SK Square can hold shares equivalent to 2.5 percent of total listed shares — up to 17.8 million shares — and the new issuance falls just 10,000 shares short of that ceiling.

The strategy aims to secure as much investment capital as possible while the share price remains elevated. SK Hynix plans to deploy the proceeds into AI semiconductor investment.

Some 31 trillion won will go toward the first fab at the Yongin semiconductor cluster, whose first clean room is set to begin operation early next year. Another 19 trillion won is earmarked for the Cheongju P&T7 advanced packaging fab.

The company also plans to use the newly raised funds to purchase next-generation EUV lithography equipment from ASML, with 12 trillion won in spending planned through December next year.


jeongwan@heraldcorp.com