SK Hynix ADRs Trade at 52% Premium to Domestic Shares as Mutual Conversion Begins July 29

SKHY-8.74%
According to Financial News, SK Hynix American depositary receipts (ADRs) are trading at a premium of up to 52% compared to domestic shares as of July 27, with the stock closing at 1.816 million KRW domestically while ADRs equivalent to approximately 2.256 million KRW per share. Starting July 29, mutual conversion between ADRs and domestic shares will commence, potentially enabling arbitrage opportunities and narrowing the price gap. Institutional investors may purchase undervalued domestic shares and convert them to ADRs for sale in the U.S. market, bringing buying demand to domestic shares while increasing ADR supply, which could help close the valuation gap between the two markets.
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