SK Hynix to list on Nasdaq next month, targeting global capital to strengthen tech leadership

Files ADR listing documents with SEC on Wednesday

Trading under 'SKHY' ticker set to begin July 10

Pitches itself to investors as 'full-stack AI memory creator'

Highlights No. 1 HBM market share

Cites deepened Nvidia partnership and broader CSP customer base

Proceeds earmarked for Yongin and Cheongju fabs, EUV equipment

Net cash of 100 trillion won within reach

"The world's leading memory company and full-stack AI memory creator."

That is how SK Hynix introduces itself on the opening page of the Form F-1 registration statement it filed publicly with the US Securities and Exchange Commission.

SK Hynix filed documents with South Korean financial regulators and the SEC on Wednesday for a Nasdaq listing of American depositary receipts, formally announcing a next-month debut. The move comes roughly seven months after speculation about a US listing first surfaced late last year, and the company has moved swiftly to bring it to fruition. If the plan proceeds on schedule, trading under the ticker "SKHY" will begin July 10.

SK Hynix plans to use the Nasdaq listing to strengthen its competitive edge in high-bandwidth memory. It also intends to reshape its conventional DRAM and NAND flash lineups into AI-optimized offerings. To support that strategy, most of the proceeds from the new share issuance are expected to flow into the first fab at the Yongin semiconductor cluster, which serves as a production base for HBM and premium DRAM.

A net cash position of 100 trillion won ($65 billion) — a target CEO Kwak Noh-jung mentioned at the start of the year — also appears well within reach. Kwak has emphasized the importance of holding ample cash to sustain stable investment, and the listing would bring roughly 45 trillion won into the company at once.

SK Hynix filed the F-1 registration statement publicly with the SEC on Wednesday, having submitted a confidential draft F-1 in March and continued the review process since then. The public filing formally announces the listing plan. The company simultaneously filed a registration statement with South Korean financial authorities to prepare for the new share issuance.

SK Hynix plans to issue up to 17.79 million new shares. Based on the current share price, the offering is valued at approximately 45.45 trillion won. The company will conduct a book-building process targeting global institutional investors on July 6, with the offering price to be set on July 9. Trading on Nasdaq is then scheduled to begin July 10.

At roadshow meetings with investors ahead of the listing, the company plans to highlight its commanding position in the HBM market. The US registration statement also underscores that dominance: SK Hynix said it held a 56.4 percent revenue-based market share in HBM in the first quarter of this year, ranking first globally. It also said it is the world's second-largest supplier of both DRAM and NAND flash, with shares of 29.1 percent and 18.5 percent, respectively.

The steep earnings growth driven by the AI semiconductor supercycle is another key investment highlight. SK Hynix said its sales last year reached 97 trillion won, with a compound annual growth rate of 72 percent over the three years from 2023. First-quarter sales this year came in at 53 trillion won, nearly double the 18 trillion won recorded in the same period a year earlier.

SK Hynix memory market share [Source: US Securities and Exchange Commission]

SK Hynix aims to use its Nasdaq listing as a springboard to establish itself as a full-stack AI memory maker. Targeting the AI data center market, the company has assembled an integrated portfolio spanning HBM, low-power DRAM, graphics DRAM and enterprise solid-state drives.

Beyond that, SK Hynix plans to deepen its technology leadership for the AI and high-performance computing era. It intends to build on its experience developing and mass-producing leading products such as HBM3E to widen its technology gap in next-generation HBM while also improving production efficiency and cost competitiveness. Conventional DRAM and NAND flash lineups will be reorganized around AI-optimized offerings as well.

Strengthening ties with key customer Nvidia is also central to the strategy. SK Hynix met with Nvidia CEO Jensen Huang earlier this month to announce an AI partnership, agreeing to co-develop Nvidia-customized memory and supply it stably over the long term. SK Hynix is also pursuing a broader customer diversification strategy that extends beyond Nvidia to include cloud service providers.

All proceeds from the new share issuance will be directed toward AI semiconductor investment. SK Hynix plans to put 31 trillion won into the first fab at the Yongin semiconductor cluster, whose first cleanroom is set to begin operation in the first quarter of next year. Another 19 trillion won will go toward the advanced packaging fab at Cheongju's P&T7 facility. Investment in the Yongin fab is concentrated through next year, while large-scale spending on the Cheongju packaging fab is scheduled to begin later, from 2029.

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.

The new share issuance is also expected to boost the company's cash reserves. At the annual shareholders meeting in March, CEO Kwak said the company aims to secure more than 100 trillion won in net cash. "We will execute the long-term, strategic investments needed to maintain competitiveness under any circumstances," he said.

SK Hynix posted net profit of more than 40 trillion won in the first quarter alone, ending the period with a net cash position of 35 trillion won. Adding the roughly 45 trillion won expected from the ADR listing would bring net cash to around 80 trillion won. With analysts forecasting net profit of more than 50 trillion won for the second quarter, reaching 100 trillion won by year-end appears well within reach.

jeongwan@heraldcorp.com