SK Hynix Reviews 0.5% Underwriter Fee for US ADR Listing

SK Hynix is reviewing a plan to pay underwriters approximately 0.5% of raised funds as fees for its upcoming US American Depositary Receipt (ADR) listing, Bloomberg reported on July 4 (local time). Based on SK Hynix's recent market capitalization, the offering could raise approximately $26.5 billion, resulting in total underwriter fees of $130 million at the 0.5% rate. Multiple sources told Bloomberg that the company is in discussions regarding fees and performance compensation, with details subject to change. The 0.5% fee rate would be lower than SpaceX's recent initial public offering (IPO) fee rate of 0.67%. Bloomberg forecasts this could become one of the highest-fee Asia corporate deals this year and potentially match the scale of Saudi Aramco's 2019 IPO.

SK Hynix ADR Fee Structure Based on Market Capitalization

According to Bloomberg's report, SK Hynix could raise approximately $26.5 billion (approximately 40.545 trillion won) through the offering based on the company's recent market capitalization. At a 0.5% fee rate, total underwriter fees would reach $130 million (approximately 198.9 billion won).

Multiple sources told Bloomberg that SK Hynix is conducting discussions on fees and performance compensation, and that specific details are subject to change. The 0.5% fee rate is lower than the 0.67% rate applied to SpaceX's recent record-breaking IPO.

Bloomberg Compares SK Hynix Fees to SpaceX IPO and Asia Market Rankings

Despite the lower fee rate, Bloomberg forecasts that the large fundraising scale will make this one of the deals generating the highest underwriter fees among Asia corporate transactions this year. Bloomberg also stated that this listing could potentially become a historic stock offering matching the scale of Saudi Aramco's 2019 IPO.

FAQ

What underwriter fee rate is SK Hynix reviewing for its US ADR listing? SK Hynix is reviewing a plan to pay underwriters approximately 0.5% of raised funds as fees for its upcoming US ADR listing, according to Bloomberg's July 4 (local time) report. Multiple sources told Bloomberg that the company is in discussions regarding fees and performance compensation, with details subject to change.

How does SK Hynix's proposed fee rate compare to SpaceX's IPO fee rate? SK Hynix's proposed 0.5% underwriter fee rate is lower than SpaceX's recent IPO fee rate of 0.67%, according to Bloomberg's report. Despite the lower rate, Bloomberg forecasts that SK Hynix's large fundraising scale could make this one of the highest-fee Asia corporate deals this year.