SK Hynix Mulls 0.5% Fee for Banks in Major US ADR, Nasdaq Debut Set
SK Hynix's US Listing Plans and Bank Fees
Underwriting Fee Considerations
July 4 (Reuters) - SK Hynix is considering paying about 0.5% of the proceeds from its U.S. listing to banks working on the deal, Bloomberg News reported on Saturday citing people familiar with the matter.
Potential Share Issuance
• The South Korean chipmaker has indicated it could issue up to 2.5% of its outstanding shares, although the final size of the offering has not been determined, the report said.
Additional Incentives
• SK Hynix may also pay discretionary incentives on top of the base underwriting fee, the report added.
Timeline and Nasdaq Debut
Book Building and Pricing
• The world's second-largest memory chipmaker will kick off its ADR book building process on July 6 and determine the final offer price on July 9 ahead of its Nasdaq debut the following day.
Comments from Stakeholders
• SK Hynix declined a Reuters request for comment.
• Goldman Sachs, JPMorgan, Citigroup and Bank of America, leading the share sale, did not immediately respond to a Reuters request for comment outside regular business hours.
Fundraising Goals and Market Context
Scale of the Listing
• Last month, the company said it plans to raise up to $29.4 billion through a U.S. stock market listing in what would be among the biggest listings globally, as the Nvidia supplier seeks to capitalize on strong investor appetite for AI stocks.
Industry Impact
(Reporting by Devika Nair in Bengaluru, Editing by Raju Gopalakrishnan)
