The U.S.-listed receipt diverged sharply from the company’s Korea-listed common stock after the $26.5 billion issuance, with trading-hour differences and conversion limits widening the gap.
SK Hynix’s U.S.-listed ADR (American depositary receipt, a tradable claim on foreign shares) jumped 27% on Tuesday, briefly taking its premium over the company’s Korea-listed common shares to 51%. That marked a sharp widening from about 3% at the pricing of the $26.5 billion issuance. Each ADR represents 0.1 common share, and the disparity was magnified by different trading hours and restrictions on converting common stock into ADRs, factors that can temporarily distort pricing between overseas listings and home-market shares.