Undaunted by SK Hynix’s stock price falling 30%, SK ADR’s U.S. stock subscription is oversubscribed by 7 times, and official trading begins on 7/13.

SK Hynix's US stock listing order book closed on Wednesday for receiving orders. Bloomberg reported that oversubscription has exceeded 7 times. According to Bloomberg's estimate, the fundraising scale is about $24.5 billion, making it the second largest in history for foreign companies listing in the US, second only to Alibaba.

(Previous recap: SK Hynix to list on Nasdaq on July 10! A one-stop guide to the SKHY ticker and $29 billion ADR)

(Background: Crude oil surges, US semiconductor stocks plunge in pre-market! Memory stocks worst hit, Micron and SanDisk fall over 5%)

SK Hynix's share price on the Korea Stock Exchange has now fallen nearly 30% from its all-time high set at the end of June. Rivals such as Samsung and Micron have also declined over the same period. The market is worried that the investment boom in AI infrastructure is cooling and retail funds should exit.

But then, this memory giant's ADS subscription book on Nasdaq is still being flooded. Bloomberg reported that the oversubscription multiple has exceeded 7 times. The aggressiveness of institutional orders contrasts sharply with the downward trend of the current stock price.

$24.5 billion, the second largest foreign company listing in US history

This issuance of American Depositary Receipts (ADRs, which are certificates allowing foreign company shares to be traded on US exchanges) amounts to 177.9 million shares, with each ADR representing one-tenth of a common share.

Based on Wednesday's closing price in Seoul of 2.08M won (approximately $1,380), Bloomberg estimates the fundraising scale at about $24.5 billion. The market had previously expected up to nearly $29 billion. The actual amount will be finalized after the official pricing on Thursday, with room for fluctuation.

But regardless of the final number, the $24.5 billion scale is enough to make SK Hynix the second largest foreign company listing in US history, second only to Alibaba's $25 billion IPO in 2014, and an unprecedented scale for a South Korean company.

The underwriting syndicate is led by Bank of America, Citigroup, Goldman Sachs, and JPMorgan, with 9 other institutions participating in distribution. The scale of the underwriting team itself indicates the weight of this transaction. The order book closed at 4 PM on Wednesday, awaiting official pricing on Thursday.

Buyer list: long-term funds and sovereign funds rush in

Bloomberg reported that this round of subscription attracted global long-term funds, funds focused on the technology sector, sovereign funds, and Asia-oriented global investors. The buying structure spans multiple types of institutional capital, not a single group's enthusiasm.

Looking ahead, SK Hynix and its long-time rival Samsung Electronics will both increase investment. This is part of a South Korean government-led plan worth $880 billion, aiming to keep memory and advanced process capacity firmly within South Korea. It also means that the funds raised from this listing will ultimately flow back into fabs and capacity expansion, rather than sitting in bank accounts.

The ADRs issued are expected to begin conditional trading on the Nasdaq Global Select Market on Friday. After transitioning to formal trading on July 13, the ticker will change to SKHY, and the stock price will then truly undergo daily scrutiny by US investors.