SK Hynix Inc. made a strong entrance on the Nasdaq on Friday, with its American Depositary Shares (ADS) closing at $168.01—a 12.8% rise from the $149 offering price. The chipmaker's U.S. listing, which raised approximately $26.5 billion, now commands a 15.5% premium over the value of its common shares traded in Seoul when adjusted for the exchange rate.
The premium highlights a notable divergence between the two markets. Based on Friday's close in Korea, where SK Hynix common shares ended at 2.18 million won, each ADS—representing one-tenth of a common share—would be worth roughly $145.42 using a won-dollar rate of 1,499.15. The Nasdaq closing price of $168.01 thus sits $22.59 above that theoretical value, though the non-overlapping trading sessions mean this is not a live arbitrage opportunity.
During the when-issued session, the ADS traded as high as $177 before settling lower. Volume was exceptionally heavy, with about 106 million ADSs changing hands—roughly 60% of the total offering and equivalent to 10.6 million common shares, more than double the typical daily volume in Seoul. JJ Kinahan of Cboe Global Markets described the early turnover as “a huge number.” Options trading on the ADS is expected to begin Tuesday.
The listing comes at a challenging time for the memory chip industry. CEO Kwak Noh-jung warned that 2027 could be “the worst year in the industry’s history from the supply perspective” and noted that customer demand may outstrip available capacity beyond 2030. SK Hynix holds a leading position in high-bandwidth memory (HBM) chips, which are critical for Nvidia’s AI accelerators.
Valuation comparisons already reflect some of the optimism. At the offer price, SK Hynix traded at 5.5 times forward earnings, while rival Micron Technology traded at 6.66 times. Applying the Friday premium pushes SK Hynix’s multiple to about 6.35 times, narrowing the gap but still leaving room for further convergence. “SK Hynix leads on share and Nvidia proximity,” said Daniel Newman of Futurum Group.
The transition to regular-way trading on Monday under the ticker SKHY will test market plumbing. Settlement for Friday’s when-issued trades is set for Tuesday, July 14. Arbitrage traders may attempt to exploit the price gap by buying the cheaper Seoul shares and selling the more expensive ADSs, but the depositary’s ability to reject common share deposits could limit the supply of new ADSs in New York, potentially sustaining the premium.
The premium could also narrow if Seoul shares open weaker, the dollar strengthens, or additional ADSs hit the market. A broader pullback in AI infrastructure spending would pressure both securities. SK Hynix shares in Korea have already fallen about 25% from their peak two weeks ago. “Oversupply fears are inherent to the industry,” noted Matt Kennedy of Renaissance Capital.
Monday’s Seoul session will provide an early read on the new parity level ahead of the Nasdaq open. Settlement and options trading are both slated for Tuesday. Meanwhile, SK Hynix is expected to convert some of its dollar proceeds into won, a move that Brent Donnelly of Spectra Markets described as “a dollar-selling, won-buying event,” which could support the Korean currency and lift the implied ADS value even if the share price remains unchanged.
