SK Hynix shares jump 14% in marquee US debut
Since July 22, numerous unauthorised exchange outlets have been closed after the military intelligence agency summoned currency dealers to address the rising dollar rate in the open market. photo: file
SK Hynix's US-listed shares jumped 14% in their Nasdaq debut following its $26.5 billion share sale, the latest indication that investor enthusiasm for chip stocks remains intact despite their recent pullback from a dizzying rally.
The South Korean chipmaker is the latest to ride a frenzy of investor interest in firms perceived as reaping big gains from the AI revolution that has spawned hundreds of billions of dollars in capital spending.
Chip stocks have lost some momentum in recent weeks after a stellar run, partly due to investor concerns about slower AI spending. SK Hynix shares have dropped a quarter from their record high hit two weeks ago. Even so, the company's stock is about 630% higher than a year ago.
SK Hynix's ADRs, ten of which equal one common share, opened at $170 apiece. The offer price was $149, which was a 2.7% premium to its average share price over the last three trading days in Seoul.
"Demand for the US share sale has been stronger than some people might have expected. That implies the memory chip rally might have just taken a breath rather than peaked," said Dan Coatsworth, head of markets at AJ Bell.