SK Hynix Completes $26.5B ADR Offering; U.S. Shares Trade at 33% Premium to Seoul Stock

SK Hynix-8.33%
SKHY-6.83%
TSM-2.24%
According to South Korea's Korea Securities Depository (KSD), SK Hynix (SKHY-US) completed a record $26.5 billion ADR offering on Wednesday (July 23), with U.S.-listed shares trading at a 33% premium to Seoul-listed stock. Conversion from Korean shares to ADRs is capped at 2.5% of total shares—a limit already exhausted at IPO launch, preventing arbitrage from narrowing the price gap. Custodian Citibank paused ADR issuance and redemption through July 29 due to technical procedures. The structure mirrors TSMC (TSM-US), which maintained an average 12.6% premium over the past five years under similar conversion restrictions.
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