The semiconductor market is experiencing a moment of truth. SK Hynix's $28 billion American depositary shares offering has sparked a real frenzy among institutional investors. Demand exceeded supply by more than seven times — a clear signal that global funds see long-term value in the Korean chipmaker, despite turbulence in the local market.
Bids came from major players with "long money": Baillie Gifford, Coatue Management, and Situational Awareness Partners were ready to invest a combined total of up to $7 billion. Interest persisted even amid a sharp drop in the Korean KOSPI index, which briefly entered bear market territory this week, losing more than 20% from its peak levels. The decline in SK Hynix and Samsung Electronics shares dragged down the entire index — these two companies now account for nearly half of KOSPI's market capitalization. A year ago, this figure was around 25%, indicating a critical market concentration.
The deal's underwriters — Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase — announced that the final offering price will be determined after the close of trading in Korea on Thursday, July 9. Preliminary trading on Nasdaq under the ticker SKHYV (when-issued mode) will begin on Friday, with a full listing under the permanent ticker SKHY starting on July 13.
Notably, UBS recommended that clients buy SK Hynix American depositary receipts and sell shares on the Korean market — betting on a higher valuation of the stock in the U.S. This arbitrage approach highlights the difference in risk perception between local and international investors. While the Korean market is in turmoil due to domestic factors, global funds are betting on the AI chip demand cycle, where SK Hynix holds a key position.
This is the largest offering since SpaceX's June IPO ($85.7 billion) and the second-largest in 2026. However, the concentration of bids among a few large funds could amplify both gains and losses in the stock price. There is no consensus on Wall Street either: JPMorgan and Morgan Stanley are making opposing bets on the future demand for AI chips. My view: The demand for SK Hynix in the U.S. is not just faith in the company, but a bet that the global AI chip cycle will survive the local correction. But if U.S. trading does not meet expectations, arbitrage could backfire on those who bought at the peak of the frenzy. Keep an eye on the SKHY ticker — it will be a litmus test for the entire sector.