SK Hynix Makes Biggest Foreign Debut in US

Summary

Bloomberg's Denny Thomas discusses SK Hynix's record $26.5 billion US ADR offering, the largest ever first-time share sale by a foreign company. The offering priced at a premium, underscoring strong global investor demand for the AI infrastructure trade. Thomas highlights that SK Hynix and Samsung are the foundation of the AI buildout and their earnings remain robust. He also explores whether this deal could reopen a pipeline of Asian listings into the US, though he cautions conditions are not yet in place.

• SK Hynix raised $26.5 billion in the largest US ADR debut by a foreign company.
• The ADR priced at a premium above the previous day's close, signaling strong demand.
• Korean memory chipmakers SK Hynix and Samsung are described as the foundation of the AI buildout.
• Samsung's operating income surged 50%, reinforcing positive fundamentals in the sector.
• The successful listing confirms ample investor appetite despite broader AI rally doubts.
• A potential wave of Korean and Asian US listings could follow if SK Hynix's ADR trades well.
• The long-standing valuation discount for Korean companies might narrow if more pursue US listings.