On the 10th local time, ahead of its American depository receipts (ADR) listing, SK hynix(000660) proposed an offering price of $149 per share, Bloomberg reported on the 9th, citing multiple sources.
According to Bloomberg, $149 is about 3.1% higher than the price converted on an ADR basis from the closing price of SK hynix common shares, 2,186,000 won (about $1,445), which finished transaction that day on the domestic main board.
According to a U.S. Securities and Exchange Commission (SEC) filing, 1 ADR corresponds to one-tenth of an SK hynix common share.
Bloomberg, citing the sources, said the offering terms have not yet been finalized and could change.
If the offering price is set at $149, the total amount to be raised in this offering is expected to reach about $26.5 billion (about 40 trillion won). That would exceed Alibaba's $25 billion initial public offering (IPO), which was the largest-ever first U.S. listing take by a foreign company.
This offering will issue a total of 177.9 million ADR shares, which corresponds to 17.79 million common shares.
The previous day, Bloomberg reported that subscriptions in the SK hynix ADR bookbuilding exceeded seven times the offering amount. Bloomberg said demand poured in from global long-term investment funds, technology-focused funds, sovereign wealth funds, and Asia-focused global investors.
In particular, investment firms including Baillie Gifford, Coatue Management, and Situational Awareness were said to have indicated investment intentions of up to $7 billion.
The lead underwriters for the SK hynix ADR listing are Bank of America (BofA), Citigroup Global Markets, Goldman Sachs, and JPMorgan, with nine additional firms participating.
SK hynix ADRs will begin temporary trading on the Nasdaq Global Select Market on the 10th under the ticker symbol "SKHYV," and are scheduled to switch to regular trading starting on the 13th.