SK hynix will begin operating the procedure to convert American depositary receipts (ADR) into domestically listed common shares starting on the 30th. However, it noted that converting domestic common shares into ADRs is subject to regulatory filing procedures and issuance limits.
SK hynix said at its second-quarter earnings conference call on the 29th, "Starting on the 30th, the day after the common shares are listed on the Korea Exchange (KRX), ADRs can be freely converted into common shares."
Conversely, the procedure to convert domestic common shares into ADRs may be restricted. SK hynix said, "Considering past cases of domestic corporations' existing depository receipts (DR), the issuer may need to undergo regulatory filing procedures when converting common shares into ADRs," adding, "We expect the process to generally take more than several weeks."
The total ADR issuance also cannot exceed the preset conversion cap. The current cap for converting common shares into ADRs is set at 17,790,000 shares, the same as the number of shares issued this time.
SK hynix said, "Whether to increase the ADR proportion in the future will be reviewed comprehensively, taking into account the relevant regulatory environment," adding, "Nothing has been decided specifically at this time."