South Korean memory chip giant SK hynix has priced its massive US stock offering at $26.5 billion, tapping into the artificial intelligence frenzy with one of the largest public listings in history. The company, which supplies advanced memory chips to Nvidia, plans to issue roughly 18 million shares on the Nasdaq later Friday.

The listing comes amid a turbulent period for tech stocks, with valuations under scrutiny as investors question when the huge spending on AI infrastructure will pay off. SK hynix has surged more than 220% in Seoul this year. Despite the jitters, interest in the Nasdaq debut was strong, with reports of oversubscription by more than seven times. The haul surpasses Saudi Aramco's $25.6 billion IPO in 2019 and Alibaba's $21.8 billion New York debut, though it falls well short of SpaceX's record $75 billion listing last month.

SK hynix will trade via American depositary shares, each representing one-tenth of a regular share, priced at $149. The offering is led by BofA Securities, Citigroup, Goldman Sachs, and JP Morgan. Proceeds will fund a new fabrication hub near Seoul and an advanced packaging facility in Cheongju. The company also participates in a massive public-private chip hub project in southwest South Korea. The AI boom has not only boosted SK hynix but also rivals Samsung and Micron, all three now members of a $1 trillion market cap club. Meanwhile, the surge in high-bandwidth memory demand has strained supply for less flashy chips, pushing up prices for consumer electronics like Apple's MacBooks and iPads.

Source: The Guardian