SK Hynix Surges 13% in Record $26.5B US Debut on July 10

SK Hynix raised $26.5 billion in its US debut on Friday, marking the largest-ever listing by a foreign company in America. The South Korean memory chip maker’s American depositary receipts jumped 13% to $168 on their first trading day after pricing at $149 each. Demand for the offering was seven times oversubscribed, reflecting investor hunger for companies supplying high-bandwidth memory chips to power artificial intelligence infrastructure.

Record-breaking IPO tops Alibaba’s 2014 deal

SK Hynix sold 177.9 million ADRs at $149 each, raising $26.5 billion and surpassing Alibaba’s $25 billion IPO in 2014. Each ADR represents one-tenth of a share, allowing US investors to buy in at lower prices. The deal ranks as the world’s third-largest IPO by size and gives American investors direct access to a key Nvidia supplier.

Memory chip shortage fuels AI buildout demand

SK Hynix manufactures high-bandwidth memory and NAND flash chips critical for data centers and AI processors. Global shortage of these components has created pricing power for the company and peers like Samsung Electronics and Micron Technology. The South Korean stock has soared 634% in the past year and 174% in the past six months, driven by relentless demand from hyperscalers building AI infrastructure.

Symbol change and regular trading begins Monday

SK Hynix trades under temporary ticker SKHYV through Friday and switches to SKHY on Monday, July 13, for regular way trading. Bank of America, Citigroup, Goldman Sachs and J.P. Morgan led the offering. The company plans to use proceeds for a new fab in South Korea, a packaging facility, and EUV scanners to expand manufacturing capacity.

Korea Discount vanishes as AI euphoria persists

SK Hynix priced its US shares at a 2.7% premium to its Seoul three-day average, breaking the traditional Korea Discount that has long depressed valuations for South Korean companies. Investor enthusiasm mirrors the excitement around SpaceX’s June IPO, signaling sustained appetite for AI infrastructure leaders. Traders view the listing as a test of whether memory chip demand will hold as capital spending on AI continues.

Final Thoughts

SK Hynix’s record $26.5 billion debut and 13% first-day pop reflect the market’s conviction that AI memory demand will remain strong. With the stock now accessible to US investors and manufacturing capacity expanding, SK Hynix is positioned to capture outsized gains if the AI buildout accelerates.

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