SK Hynix Roadshow PPT Revealed: Listing Motivation Driven by Dual Demands for Valuation Reassessment and Capital Expansion

Jinse Finance reported that the roadshow PPT for SK Hynix's US stock listing has been revealed. Baillie Gifford Overseas Limited, Coatue Management, and Situational Awareness Partners have each (not jointly) indicated their intention to subscribe for up to USD 7 billion worth of American Depositary Shares (ADS) in this offering at the initial public offering price. According to the disclosed information, SK Hynix’s motivation for this listing is driven by both valuation re-rating and capital expansion. The company has long faced a valuation discount and is currently trading at a forward 12-month price-to-earnings ratio of 6.2 times, lower than Micron Technology’s 7 times; its expected price-to-sales ratio is 3.6 times, also lower than Micron’s 4.6 times. The fundamental reason for this valuation gap is the obstacles US investors face when investing directly in Korean stocks. The raised funds will be used to expand domestic production capacity in Korea, including KRW 45.5 trillion in capital expenditure and KRW 11.9 trillion for EUV lithography machine procurement.