SEOUL, March 24 (Reuters) - South Korea's SK Hynix
is considering raising 10 trillion to 15 trillion
won ($10.03 billion) through a potential U.S. listing, aiming to
expand production capacity for advanced memory chips, the Korea
Economic Daily reported.
A U.S. listing would give the Nvidia ( NVDA ) supplier
access to a wider pool of capital and could help narrow a gap in
its valuation compared with global peers such as Micron,
the newspaper said.
Here are some details:
* SK Hynix plans to issue new shares to support a listing of
American depositary receipts (ADRs), with funds likely to be
used to build artificial intelligence infrastructure and expand
capacity for memory products, the newspaper reported, citing
unnamed industry sources.
* The chipmaker, in a statement to Reuters, said that the
company is reviewing various measures to enhance shareholder
value, including an ADR listing, but added that nothing has been
finalised.
* SK Group Chairman Chey Tae-won last week said SK Hynix
is reviewing a potential U.S. ADR listing to broaden its global
investor base beyond Korea and increase exposure to global
investors.
* In January, SK Hynix said it would cancel about 12.2
trillion won worth of treasury shares, equivalent to 2.1% of
total shares outstanding, in a move aimed to boost shareholder
value.
* SK Hynix ranks No.1 in the high-bandwidth memory chip
market, used in AI, with a 57% share. It also holds a 32% share
of the global DRAM market, used in AI chipsets and electronic
devices, making it the second-largest player after cross-town
rival Samsung Electronics ( SSNLF ), according to
Counterpoint.
* Shares of SK Hynix closed up 5.7%, compared with a 2.7%
rise in the benchmark KOSPI.
($1 = 1,495.0000 won)