Bloomberg reported that the depository receipts (ADR) offering that SK hynix is listing in the United States drew oversubscription amounting to "multiple times."
According to Bloomberg sources, demand from large, long-term institutional investors and tech-focused investors was strong from the start, and about 1,000 institutions took part in the investor presentation held on the 6th.
Bloomberg added that three major investment firms—Situational Awareness Partners, Baillie Gifford, and Coatue Management—have indicated they are willing to buy up to $7 billion in the offering.
Nori Chiu, investment director at investment firm White Oak Capital, said, "From the perspective of U.S. investors, Korean stocks, especially memory semiconductor names, are relatively scarce and hard-to-access assets," adding, "that scarcity value will support demand."
The offering price will be set on the 9th in the afternoon New York time.
There are variables, however. Semiconductor stocks have been swinging sharply in the U.S. and Korean markets recently. In Korea, SK hynix shares fell 17% this month and are also down about 9% from the ADR reference price (242,500 won) specified as the base price in U.S. Securities and Exchange Commission (SEC) filings.
As the share price fell, the offering size, which had been expected to be $29 billion at the end of last month, could shrink to around $28 billion.