South Korean chipmaker SK Hynix Inc. has listed American Depositary Receipts (ADRs) on the Nasdaq stock exchange, raising $26.5 billion.
The size of the offering set a record for a foreign issuer in the US, surpassing the size of Alibaba Group Holding’s initial public offering ($21.8 billion) in 2014.
According to a statement from SK Hynix, the company sold 177.9 million ADRs at a price of $149. Ten ADRs are equivalent to one ordinary share.
The securities were placed at a premium of 3.1 per cent to the price of SK Hynix’s ordinary shares at the close of trading in Seoul on Thursday. Demand for the ADRs exceeded supply by more than seven times, totalling around $200 billion. Almost half of the ADRs were allocated to the investors who submitted the ten largest bids.
The company had previously announced that it planned to use the proceeds to build a chip manufacturing plant in Yeongin, expand its facility in Cheongju and purchase equipment for microchip production.
SK Hynix shares rose by 3.9 per cent during trading in Seoul on Friday. Pre-market trading in the company’s ADRs on Nasdaq will begin on 10 July, with regular trading commencing on 13 July.