SK Hynix, the South Korean memory chip manufacturer, raised $26.5 billion in its U.S. market debut, marking the largest-ever American listing by a non-U.S. company and surpassing Alibaba’s 2014 IPO. The company sold shares priced at $149 each on the Nasdaq, structured to allow U.S. investors access at a fraction of the share price in Seoul. Shares opened 14% above the offering price, with demand reportedly exceeding available shares by more than seven times, according to media reports.
The strong reception comes despite Korean companies typically trading at a valuation discount tied to governance and geopolitical concerns. Analysts attributed investor enthusiasm to SK Hynix’s role as a key supplier of high-bandwidth memory chips used in AI processors, including for Nvidia. Proceeds from the offering will fund a new manufacturing facility in South Korea, a packaging plant, and advanced chipmaking equipment, according to the company’s regulatory filing.
The listing coincided with remarks from U.S. Commerce Secretary Howard Lutnick, who said he is in discussions with SK Hynix and Samsung about establishing memory chip manufacturing facilities in the United States, aiming to reduce reliance on South Korean production. Micron, a competing U.S. memory maker, has separately committed to a $250 billion domestic manufacturing investment. The developments follow a recent pledge by major South Korean chipmakers to invest more than $550 billion in expanding manufacturing capacity at home.
