SK Hynix plans $28 billion Nasdaq listing to fund AI chip expansion

South Korea’s SK Hynix will launch a US listing on Monday to raise about $28 billion, as the memory chipmaker seeks to capitalise on investor demand linked to the global artificial intelligence boom.

According to regulatory filings, the company will sell 17.79 million new shares through American Depositary Receipts on the Nasdaq. Ten ADRs will represent one common share.

The price range is expected to be announced on Monday, based on SK Hynix’s Seoul-listed share price. The final listing price is due on Thursday, before trading begins on Friday.

SK Hynix shares were down 4% at 2,327,000 won on Monday, while South Korea’s KOSPI index fell 2.2%. Despite the decline, the stock has gained about 273% this year on demand for AI-linked semiconductor companies.

The company plans to use proceeds from the ADR listing to build chip factories in South Korea and buy chipmaking equipment, including an extreme ultraviolet scanner from Dutch equipment maker ASML.

SK Hynix has become one of the main beneficiaries of the AI investment cycle, supported by demand for high-bandwidth memory chips used in AI systems by customers including Nvidia and Google. The company has outperformed rivals Samsung Electronics and Micron during the boom.

The planned listing comes after South Korea announced a $576 billion semiconductor and AI investment programme in the country’s southwest. SK Hynix and Samsung Electronics are expected to anchor the programme.

South Korean President Lee Jae Myung on Monday directed officials to accelerate major chip and AI projects announced last week, warning that delays in permits, land acquisition, power supply and water availability could affect the country’s advanced-industry ambitions.

The SK Hynix deal is expected to be the second-largest share sale globally after SpaceX’s $85.7 billion initial public offering last month. It would also exceed Saudi Aramco’s $25.6 billion IPO in 2019 and Alibaba’s similar-sized offering in 2014.

Analysts said the US listing could improve access for investors and help reduce SK Hynix’s valuation gap with Micron. The company is also expected to join the Philadelphia SE Semiconductor index, which could attract passive investment flows.

Some investors, however, remain cautious about whether rising memory prices could weigh on spending for AI infrastructure, mobile phones and personal computers. Standard Chartered’s Sundeep Gantori said the memory cycle was no longer in its early phase and had moved into the mid-cycle stage.

Last month, HSBC said it would raise its valuation of SK Hynix by applying a 20% premium to its previous price-to-book multiple of 2.8 times, implying a multiple of 3.4 times, citing improved investor access and shareholder-focused measures.