SK Hynix weighs 0.5% bank fee for potential U.S. listing

Bloomberg said the chipmaker is advancing a U.S. ADR offering that could be among the world’s largest equity sales, while a possible issuance of up to 2.5% of total shares remains under consideration.

Summary

SK Hynix is advancing a U.S. ADR offering that Bloomberg, citing people familiar with the matter, said could rank among the largest equity sales globally. The chipmaker previously said it may issue new shares equal to up to 2.5% of total shares. Banks are set to receive a base underwriting fee of 0.5% of proceeds, with possible discretionary incentives also under discussion.

Terms & Concepts
  • ADR offering: A sale of American depositary receipts, which let U.S. investors trade shares of a foreign company on U.S. markets.
  • underwriting fee: Compensation paid to banks for arranging and selling a share offering.