SK Hynix ADR Listing Spurs Arbitrage Focus on Share-Exchange Terms

SK Hynix Inc.’s planned $29 billion US listing is prompting arbitrage investors to scrutinize filings and press brokers on whether the chipmaker’s American depository receipts can be freely exchanged for its Seoul-listed shares, according to Bloomberg. The ability to convert ADRs into local shares could determine whether price gaps persist between the US and South Korean markets.