SK Hynix, South Korea’s largest chipmaker and most valuable company, plans to raise $29 billion U.S. by listing its shares on the Nasdaq (NDAQ) exchange.
In an initial public offering (IPO) regulatory filing, SK Hynix says that it plans to issue 17.79 million new shares at a value of $29.65 billion U.S.
SK Hynix said it expects to start trading on the Nasdaq exchange on July 10 of this year but added that the date is tentative.
In South Korea, SK Hynix’s stock (KRX: 000660) has gained 281% this year amid an artificial intelligence (A.I.) frenzy. The company’s market capitalization is above $1 trillion U.S.
SK Hynix is growing rapidly, building a new campus of memory chip fabrication plants in South Korea that is scheduled to come online in 2027.
The company is also building a $4 billion U.S. packaging plant in the U.S. State of Indiana.
A.I. has created a global memory chip shortage as high-performance computing requires large amounts of general-purpose DRAM to make what’s known as high bandwidth memory.
SK Hynix holds 60% of the high bandwidth memory chip market, according to data from Counterpoint Research.
SK Hynix and Samsung Electronics (SSNLF) together account for more than 40% of South Korea’s benchmark Kospi stock index, raising concerns about market concentration.
Tech Insider
