SK Hynix plans to list shares on the Nasdaq, aiming to raise approximately $29 billion through American depositary receipts (ADRs) priced at 255,000 won, or about $166. HSBC analysts have forecasted a 20% premium for the stock following the listing, which is scheduled for July 10, as they believe this will help SK Hynix close the valuation gap with U.S. competitor Micron Technology.
Historically, Micron has traded at a 35% premium over SK Hynix due to factors such as better access to U.S. investors and a more shareholder-friendly approach. HSBC has adjusted its price target for SK Hynix from 2.9 million won to 4 million won, indicating a potential 38% increase.
The stock has shown volatility, recently trading at 2.65 million won after a 9% drop amid a global tech sell-off, despite a 12% rise following the announcement of the U.S. listing and positive quarterly results from Micron.
Analysts view the listing as a catalyst for SK Hynix to attract a broader investor base and enhance its corporate valuation, aligning with its strategy to strengthen its position in the AI memory chip market