SK hynix, a South Korean semiconductor technology giant, set its share offering price on the U.S. stock market at 149 U.S. dollars per unit, raising approximately 26.5 billion U.S. dollars, or about 883 billion baht. This marks one of the highest-valued initial public offerings (IPOs) in global history.
The listing on the Nasdaq stock exchange through 177.9 million American Depositary Shares (ADS) was priced initially at 149 U.S. dollars per unit. Reports indicated overwhelming investor demand, exceeding the shares offered by seven times.
Although this fundraising did not surpass SpaceX's record of 75 billion U.S. dollars raised last month, SK hynix's offering surpassed the 25.6 billion U.S. dollars raised by Saudi Aramco in 2019 and Alibaba's 21.8 billion U.S. dollars from China.
SK hynix's success stems from over 14 years of investment in developing high-bandwidth memory (HBM) chips, essential components in graphics processing units (GPU) and AI data centers. Currently, SK hynix closely partners as a main supplier to Nvidia; Nvidia CEO Jensen Huang recently confirmed SK hynix remains its largest partner, with chip shortages expected to continue for several years.
This rapid growth propelled the company's market capitalization on the South Korean stock exchange beyond 1 trillion U.S. dollars in May, alongside key competitors Samsung Electronics and the U.S.-based Micron.
The company’s wealth visibly influences South Korean pop culture. This year, images of jackets printed with the SK hynix logo went viral online in South Korea, symbolizing "wealth and success." Posts jokingly described the jacket as a "golden ticket" granting access to luxury stores or enhancing dating prospects, as soaring profits suggest employees could receive annual bonuses of up to approximately 574,500 U.S. dollars (around 19.15 million baht) each.
SK hynix executives revealed that the substantial funds raised from the U.S. stock offering will finance the construction of the first chip manufacturing plant within a new semiconductor cluster project in Yongin, near Seoul, as well as an advanced chip packaging plant in Cheongju.
Additionally, this capital will enable the company to compete for market share and production volume leadership against Samsung, and help narrow the stock valuation gap with competitors like Micron, which has historically benefited from direct access to U.S. investors. Nevertheless, SK hynix’s primary stock listing will remain in Seoul, South Korea.