SK Hynix Roadshow PPT Revealed: Dual Drivers of IPO – Valuation Reassessment and Capital Expansion

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Abstract generation in progress
Golden Finance reports that the roadshow PPT for SK Hynix’s U.S. stock listing has been exposed. It is understood that Baillie Gifford Overseas Limited, Coatue Management, and Situational Awareness Partners have each (rather than jointly) indicated their intention to subscribe for the U.S. Depositary Shares (ADS) in this issuance at the initial public offering price, with a total subscription amount of up to $7 billion. According to the disclosed information, SK Hynix’s motivation for this listing is a dual demand for valuation revaluation and capital expansion. The company has long faced a valuation discount; it is currently trading at 6.2 times the forward 12-month price-to-earnings ratio, which is lower than Micron Technology’s 7 times. Measured by the forward price-to-sales ratio, 3.6 times is also lower than Micron’s 4.6 times. The fundamental reason for the valuation gap is that U.S. investors face obstacles in directly investing in South Korean stocks. Meanwhile, the funds raised will be used to expand local production capacity in South Korea, including 45.5 trillion won in capital expenditures and 11.9 trillion won for the purchase of EUV lithography machines.
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