STOCKS | SK Hynix U.S. IPO Roadshow Deck Details Potential $7 Billion ADS Interest

A roadshow presentation for SK Hynix’s planned U.S. listing has been disclosed, showing that Baillie Gifford Overseas Limited, Coatue Management, and Situational Awareness Partners have each separately expressed interest in subscribing to American depositary shares (ADS) in the offering for up to $7 billion at the IPO price. According to Odaily, the disclosed materials say SK Hynix is pursuing the listing to seek a valuation re-rating and expand capital. The presentation states that SK Hynix has long faced a valuation discount and is trading at a forward 12-month price-to-earnings multiple of 6.2, compared with Micron Technology’s 7. It also cites a forward price-to-sales multiple of 3.6, versus Micron’s 4.6. The materials attribute the valuation gap to obstacles for U.S. investors to directly invest in South Korean stocks. The disclosure also says proceeds raised will be used for capacity expansion in South Korea, including capital expenditures of 33.1 trillion won and purchases of EUV lithography machines totaling 8.66 trillion won.