SK Hynix Seeks Valuation Boost in $29 Billion US Listing

Summary

Bloomberg's Sangmi Cha breaks down SK Hynix's plan for a $29 billion US stock listing on Nasdaq. The move aims to give US investors direct access, attract passive fund flows, and close the company's persistent valuation discount to memory-chip rival Micron Technology.

• SK Hynix is planning the largest-ever US share sale by a foreign company, valued at $29 billion on Nasdaq.
• The listing provides US investors direct market access, removing reliance on ADRs and off-hours trading.
• Passive funds tracking the new US listing are expected to benefit both the US-traded and Seoul-listed shares.
• SK Hynix currently trades at 6.2x forward earnings compared to Micron's 7x, a discount the listing could help narrow.
• Underwriting fees of 0.0-0.5% are small by US standards but significant for an Asian issuer.