SK Hynix Targets $29B Nasdaq Offering as DRAM Jumps 4.2% Premarket

South Korean memory chip giant SK Hynix is raising 45.45 trillion won ($29.4 billion) through a share offering to U.S. investors next month to support a Nasdaq listing of American Depositary Receipts on July 10. The company will issue 17.79 million new shares, with proceeds earmarked for building a chip factory in Yongin, an advanced packaging facility in Cheongju, and purchasing chipmaking equipment including an Extreme Ultraviolet Scanner. The fundraising comes as the memory industry experiences one of its strongest upcycles on record.

SK Hynix Issues 17.79 Million Shares for Nasdaq ADR Listing

SK Hynix will list ADRs on the Nasdaq market on July 10. The U.S. listing will give SK Hynix direct access to American capital markets and offer U.S. investors broader exposure to the memory chip sector. The proposed fundraising would rank among the top five share sales of all time, comparable to Saudi Aramco's 2019 initial public offering.

SK Hynix Reports Record Q1 Operating Profit of $25.4 Billion

SK Hynix's operating profit for the first quarter jumped to 37.61 trillion won ($25.4 billion), a record high. Sales nearly tripled to 52.58 trillion won. As of Wednesday, the company was valued at $1.35 trillion. SK Hynix recently overtook Samsung as South Korea's most valuable company.

Roundhill Memory ETF Rises 4.2% in Premarket Trading

Roundhill Memory ETF (DRAM), a newly launched fund holding SK Hynix, Samsung, and Micron as its top three holdings, rose 4.2% in the premarket session on Wednesday. DRAM has risen 138% since its launch on April 2. Investors were positioning ahead of Micron's third-quarter report.

Micron Q3 Report Due After U.S. Market Hours

Micron's third-quarter report is due after U.S. market hours. Analysts and investors will focus on updates on high-bandwidth memory volumes, customer demand visibility, and pricing trends in DRAM and NAND markets. On Stocktwits, retail sentiment for DRAM shifted to 'extremely bullish' from 'bullish,' while sentiment for Micron turned 'bullish' from 'neutral.'

FAQ

What did SK Hynix announce on July 10? SK Hynix announced it will list American Depositary Receipts on the Nasdaq market on July 10, issuing 17.79 million new shares to raise 45.45 trillion won ($29.4 billion).

How did SK Hynix perform in the first quarter? SK Hynix reported record operating profit of 37.61 trillion won ($25.4 billion) in the first quarter, with sales nearly tripling to 52.58 trillion won.

Why did the Roundhill Memory ETF rise in premarket trading on Wednesday? The Roundhill Memory ETF rose 4.2% in premarket trading on Wednesday as investors positioned ahead of Micron's third-quarter report due after U.S. market hours.