SK hynix sets ADR IPO price at $149 per share

SK hynix has set its American depositary receipt IPO price at $149 per share ahead of its US listing Friday (local time).

Bloomberg reported Thursday (local time) that SK hynix had offered the shares at $149 each, and later confirmed the price was finalized. SK hynix did not respond to a request for comment, Bloomberg said. The offering price is to be officially disclosed at 8 a.m. Friday Korean Standard Time.

The $149 price represents a roughly 3.1 percent premium over the ADR-equivalent value of SK hynix's common shares, which closed at 2,186,000 won ($1,450) on the Korean stock market Thursday. According to a filing with the US Securities and Exchange Commission, SK hynix offered 177.9 million ADR shares, with each ADR equivalent to one-tenth of one common share.

At the $149 offering price, SK hynix stands to raise approximately $26.5 billion, which would be the largest-ever US listing by a foreign company. The previous record was held by Chinese tech giant Alibaba, which raised $25 billion when it went public in the United States.

Bloomberg also reported Thursday that demand in the SK hynix ADR book-building process exceeded seven times the offered volume. Total demand reached $200 billion, with roughly half the shares allocated to the top 10 accounts and two-thirds of the total going to the top 25 accounts. The offering drew strong interest from long-term global investment funds, technology-focused funds, sovereign wealth funds and Asia-focused global investors. Asset managers including Baillie Gifford and Coatue Management and Situational Awareness indicated investment interest of up to $7 billion.