South Korean memory chip manufacturer SK Hynix (KRX: 000660) has completed its American Depositary Receipt (ADR) issuance, issuing 177.9 million ADRs at $149 per share, raising a total of $26.5 billion, making it the third-largest IPO in U.S. history; demand exceeded seven times the planned issuance, approaching $200 billion. The ADR is expected to begin regular trading on July 13.
ADR issuance scale and demand data: $26.5 billion, over 7 times oversubscribed
According to SK Hynix's prospectus and Bloomberg reports, the key figures for this ADR issuance are as follows:
Number of shares issued: 177.9 million ADRs
Issue price: $149 per share (about a 3% premium over Thursday’s closing price on the Seoul KRX)
Total fundraising: $26.5 billion
Oversubscription ratio: over seven times the planned issuance
Investor demand: close to $200 billion
Top ten order accounts: subscribe to nearly half of the ADRs
Regular trading start date: July 13, 2026
On the cornerstone buyer side, Leopold Aschenbrenner’s Situational Awareness and Baillie Gifford have expressed interest in purchasing up to $7 billion of ADRs; if SK Hynix accepts all offers, this issuance will approach the global IPO record held by Saudi Aramco (TADAWUL: 2222), which raised approximately $29 billion.
Underwriters: Bank of America, Citigroup, Goldman Sachs, and others, with underwriting fees expected to exceed $140 million
According to reports, the main underwriters for SK Hynix’s Nasdaq-listed ADR are Bank of America (NYSE: BAC), Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), and JPMorgan Chase (NYSE: JPM); smaller participating banks include Cantor Fitzgerald, Mizuho Financial Group (NYSE: MFG), and Stifel Financial (NYSE: SF).
Regarding underwriting fees, including a 0.5% fee on the fundraising amount and additional incentives provided by SK Hynix, total underwriting costs are expected to exceed $140 million; the rate is lower than typical for IPOs of similar scale because SK Hynix is already a listed company with a large scale.
Notably, this listing does not include a “green shoe option” (over-allotment option), meaning banks cannot issue additional shares. Citigroup (NYSE: C), serving as SK Hynix’s depositary bank, will handle all ADR conversions and dividend payments, earning additional revenue from these services.
Frequently Asked Questions
How is SK Hynix’s ADR listing characterized as the third-largest IPO in U.S. history?
Reports indicate that SK Hynix’s ADR raised $26.5 billion, making it the third-largest IPO in U.S. history; for comparison, Saudi Aramco’s global IPO was about $29 billion, and Alibaba’s (NYSE: BABA) 2014 IPO was $25 billion (with underwriting fees around $300 million). The exact ranking is based on official data sources like Dealogic.
How does SK Hynix’s ADR differ from a typical IPO?
Reports state that SK Hynix is already listed on the Korea Exchange (KRX: 000660), and this Nasdaq listing is a secondary listing; the ADR structure allows U.S. investors to invest through the U.S. market without trading on Seoul. Setting up ADRs involves additional procedures related to depositary bank regulations, the ratio between ADRs and ordinary shares, and conversion processes.
How strong is the cornerstone buyers’ purchase intention?
According to reports, Leopold Aschenbrenner’s Situational Awareness and Baillie Gifford intend to buy up to $7 billion of the total $28 billion; final allocations will depend on the final book-building results.
