The South Korean memory company's American depositary receipts begin trading on Friday
SK Hynix's ADRs will make their Nasdaq debut on Friday.
U.S.-listed shares of SK Hynix are set for a pop in their first day of trading on Friday as investors see a new way to buy into the memory boom.
The latest indications are for SK Hynix's American depositary receipts $(SKHYV)$ to open around $181.49, or about 22% above the offering price.
SK Hynix raised about $26.5 billion at a price of $149 per share on Thursday evening. The ADRs will start trading under the ticker SKHYV on Friday but will trade under the symbol SKHY come Monday, according to the company.
South Korea-listed shares of SK Hynix (KR:000660) closed down fractionally on Friday but have jumped 634% in the past year as demand for memory chips has surged amid the artificial-intelligence buildout.
SK Hynix is one of the world's top producers of high-bandwidth memory, and the company counts Nvidia (NVDA) as one of its main customers. Its South Korean peer Samsung Electronics (KR:005930) and Micron Technology $(MU)$ in the U.S. are the two other major producers of HBM, and all three companies have benefited from a supply crunch that has given them a lot of pricing power.
Micron's stock was down 2% on Friday morning ahead of SK Hynix's U.S. debut, but it has climbed 689% in the past year.
Evan Schlossman, a principal at Neostellar Capital, compared investor interest in SK Hynix to the excitement around SpaceX $(SPCX)$, which conducted its initial public offering in June.
"We're seeing here a very strong and persistent demand for leading companies that are driving AI forward," he said in emailed comments.
Schlossman noted positive signals for AI infrastructure demand, such as rising estimates for hyperscaler capital expenditures.
-Britney Nguyen
(END) Dow Jones Newswires
