Report: SK Hynix Plans U.S. ADR Listing, Aims to Raise 10-15 Trillion Korean Won Through New Share Issuance, Full Speed Ahead on HBM Capacity Expansion

SK Hynix is proceeding with its plan to list in the U.S. market, intending to raise capital through the issuance of new shares in the form of American Depositary Receipts (ADRs). The funds raised will be fully dedicated to expanding High Bandwidth Memory (HBM) production capacity and building AI infrastructure.

According to a March 23 report by South Korea's "The Electronic Times," the new share issuance will account for approximately 2.4% of the total shares, with the fundraising target set between 10 trillion and 15 trillion Korean won. SK Group Chairman Chey Tae-won publicly stated at Nvidia's annual developer conference, GTC 2026, on March 16 that the company is considering proceeding with an ADR listing.

The market significance of this listing plan extends beyond mere fundraising. Industry observers point out that an ADR listing could provide SK Hynix with an opportunity to reassess its valuation—its current P/E ratio stands at approximately 5.7 times, merely about half of Micron Technology's 12.1 times.

If successful in being included in major global indices such as the Philadelphia Semiconductor Index (SOX), it could also attract substantial passive capital inflows.

Treasury Stock Cancellation Precedes New Share Issuance

SK Hynix's choice to issue new shares rather than utilize treasury stock has a specific background. The company had initially considered proceeding with the ADR listing using its approximately 2.4% treasury stock holdings. However, this move raised market concerns, with suggestions that the company might be attempting to circumvent the mandatory cancellation obligation for treasury stock.

In response to external concerns, the company proactively cancelled approximately 2.1% of its treasury stock on the 9th of last month, valued at about 12.24 trillion Korean won. Currently, there are no available treasury shares.

Against this backdrop, the company has shifted to issuing new shares for its listing plan. The issuance size is approximately 2.4% of the total share capital, roughly equivalent to the proportion of treasury stock previously cancelled. According to reports, SK Hynix is expected to select underwriters soon and formally commence the ADR listing process.

Funds Directly Targeting AI Infrastructure, Accelerating Capacity Expansion

SK Hynix has clearly positioned this fundraising as a crucial initiative to strengthen its dominant position in the global AI semiconductor market.

Reports suggest that the raised funds, equivalent to 10 trillion to 15 trillion Korean won in U.S. dollars, will be primarily invested in AI infrastructure projects, centered around the construction of the Yongin semiconductor cluster. The total planned investment for this project is approximately 600 trillion Korean won.

Industry insiders indicate that the company is still weighing shareholder reactions and market sentiment when determining the final fundraising size, and does not rule out the possibility of further expanding the financing scale in the future.

ADR Structure Design May Boost Valuation Reassessment

In terms of operational structure, the newly issued shares are not expected to circulate within the South Korean domestic market. Instead, they will be directly deposited with a Korean securities depository. Subsequently, a U.S.-based bank will issue ADR certificates collateralized by these shares, enabling trading and circulation in the U.S. market.

The potential value of this structure lies in the possibility that if SK Hynix's ADRs meet the criteria for inclusion in major global indices like the Philadelphia Semiconductor Index, it could trigger passive allocation by index-tracking funds, further expanding the company's influence among international institutional investors.

The current P/E ratio gap of approximately twofold between SK Hynix and Micron Technology also provides room for valuation recovery.