SK hynix (000660.KS) drew subscriptions exceeding seven times the offered volume in the book-building for its American depositary receipt (ADR) offering, Bloomberg reported on the 8th.
Sources said the ADR offering attracted heavy demand from global long-only funds, technology-focused funds, sovereign wealth funds and Asia-focused global investors. Orders totaled approximately $171.5 billion (about 260 trillion won) in subscription value.
The underwriters closed the order book at 4 p.m. local time on the 8th, and the offering price will be finalized in the afternoon of the 9th.
If the offering is priced at SK hynix's closing price on the 8th of 2,076,000 won, the deal would raise $24.5 billion (about 37.14 trillion won). That would make it the second-largest U.S. listing by a foreign company on record, behind Alibaba ($25 billion).
The deal size shrank from the roughly $29 billion initially discussed because SK hynix's share price declined.
SK hynix shares turned downward after hitting an all-time high of 2,987,000 won on the 25th of last month. Concerns over excessive market concentration in semiconductors served as the main reason. The closing price on the 8th was 30.5% below the peak.
Shares of rival Micron Technology also fell sharply over the same period.
Nevertheless, Baillie Gifford, Coatue Management and Situational Awareness Partners had expressed intentions to buy up to $7 billion worth of the ADRs. Bank of America (BofA), Citi, Goldman Sachs and JPMorgan Chase served as lead underwriters, with nine additional securities firms participating.
SK hynix ADRs will begin temporary trading on the Nasdaq Global Select Market under the ticker "SKHYV" on the 10th, before transitioning to regular trading from the 13th.
