SK Hynix Raises $26.5 Billion in Largest Foreign IPO in U.S. History
SK Hynix, the South Korean memory chip giant, raises $26.5 billion in its U.S. market debut, marking the largest-ever IPO by a foreign company on American soil. The offering surpasses Alibaba's record-setting $25 billion IPO from 2014. Shares open 14% above the IPO price amid massive demand that exceeds seven times the available shares, defying the so-called "Korea Discount" that typically pressures Korean valuations.
The extraordinary investor enthusiasm stems from SK Hynix's critical role in the AI boom. The company produces high-bandwidth memory (HBM), an essential component for AI GPU processors, and counts Nvidia as one of its primary customers. The raised funds are earmarked for expanding production capacity, including a new fabrication plant and packaging facility in South Korea, as well as advanced EUV scanners for next-generation chips.
Meanwhile, U.S. Commerce Secretary Howard Lutnick urges SK Hynix and its rival Samsung to build new manufacturing facilities in the United States. Speaking at a Micron event, Lutnick emphasizes the strategic importance of bringing chip production to American soil rather than allowing South Korea to maintain its dominance over the critical memory chip supply chain.