SK hynix finishes filing for US depositary share offering
Summary
SK hynix finished filing its registration statement for American Depositary Shares on Nasdaq on Tuesday local time after adding litigation risks. The filing reflects a June 24 board decision to issue up to 17.79 million common shares, or about 2.5 percent of outstanding shares. The company plans to begin book building on July 6, set the final price on July 9 and start trading on July 10. It said the proceeds will go to general corporate purposes and capital expenditures, including new factories in Korea and ASML extreme ultraviolet lithography machines.
Key Facts
- The registration statement left the offering price, volume and the number of ADSs representing one common share blank.
- SK hynix said in its board decision that it seeks to have 10 ADSs represent one common share.
- The latest filing added an antitrust class action suit filed on June 25 in the U.S. District Court for the Northern District of California by 14 U.S. consumers and three small PC manufacturers.
- The plaintiffs accused Samsung Electronics, SK hynix and Micron of price fixing in DRAM products.
- SK hynix already trades on Korea’s KOSPI market, so the Nasdaq listing takes the form of American Depositary Receipts representing common shares held by a depositary bank.
SK hynix's headquarters in Icheon, Gyeonggi Province / Yonhap
SK hynix has finished filing its registration statement for listing American Depositary Shares (ADS) on the Nasdaq market Tuesday (local time), after adding its litigation risks into the statement.
According to the U.S. Securities and Exchange Commission (SEC), the company completed its ADS listing process by filing the statement with the SEC.
The statement reflected a June 24 board decision to issue up to 17.79 million common shares, which is about 2.5 percent of its outstanding common shares, for the ADS listing.
The statement left blank both the offering price, volume and the number of ADSs representing one common share, but the company said in its board decision that it seeks to have 10 ADSs represent one common share, meaning the Nasdaq listing could raise up to $29.4 billion if the ADSs are priced in line with the company's current share price.
Compared to the previous version, the latest statement revised its Risk Factors section to add an antitrust class action lawsuit filed with the U.S. District Court for the Northern District of California on June 25 by 14 U.S. consumers and three small PC manufacturers that indirectly purchased DRAM products.
The plaintiffs accused Samsung Electronics, SK hynix and Micron of price fixing to drive up memory chip prices, which in turn increased the costs of finished products such as iPads.
SK hynix plans to begin book building on July 6, set the final price on July 9 and start trading on Nasdaq on July 10. Since SK hynix is already a publicly traded company listed on Korea’s KOSPI, the listing took the form of American Depositary Receipts (ADRs), which represent underlying common shares held by a depositary bank.
SK hynix said it will use the proceeds for general corporate purposes and capital expenditures. Planned investments include new semiconductor factories in Korea and advanced chipmaking equipment such as extreme ultraviolet lithography machines produced by ASML.
Explore More
- Q.
- Q.
- Q.