On the 9th, a day before its American depositary receipts (ADR) listing, SK hynix is surging 8%.
As of 9:12 a.m. that day, SK hynix was trading at 2,261,000 won, up 185,000 won (8.91%) from the previous session on the Korea Exchange.
Buying appears to be pouring in ahead of the ADR listing by a day. SK hynix will list ADRs worth 43 trillion won on the Nasdaq. According to Bloomberg, the previous day's SK hynix ADR offering drew oversubscription amounting to "several times."
Brokerages also analyze that the ADR listing will be a catalyst for a reappraisal of SK hynix. Kim Dong-Won, head of research at KB Securities, said, "With the U.S. ADR listing scheduled for Jul. 10, access for global investors will expand, and we expect the valuations of the U.S. ADR and the Korean common stock to be reappraised simultaneously going forward."
KB Securities cited the past example of TSMC. After TSMC listed U.S. ADRs in 1997, its global investor base expanded and the ADRs formed a premium over the Taiwan common stock, and as arbitrage between the common stock and ADRs became active, the corporate values in both markets rose together, it said.