SEOUL, March 24 (Reuters) - South Korea's SK Hynix is considering raising 10 trillion to 15 trillion won ($10.03 billion) through a potential U.S. listing, aiming to expand production capacity for advanced memory chips, the Korea Economic Daily reported.
A U.S. listing would give the Nvidia supplier access to a wider pool of capital and could help narrow a gap in its valuation compared with global peers such as Micron, the newspaper said.
Here are some details:
* SK Hynix plans to issue new shares to support a listing ofAmerican depositary receipts (ADRs), with funds likely to beused to build artificial intelligence infrastructure and expandcapacity for memory products, the newspaper reported, citingunnamed industry sources. * The chipmaker, in a statement to Reuters, said that thecompany is reviewing various measures to enhance shareholdervalue, including an ADR listing, but added that nothing has beenfinalised. * SK Group Chairman Chey Tae-won last week said SK Hynixis reviewing a potential U.S. ADR listing to broaden its globalinvestor base beyond Korea and increase exposure to globalinvestors. * In January, SK Hynix said it would cancel about 12.2trillion won worth of treasury shares, equivalent to 2.1% oftotal shares outstanding, in a move aimed to boost shareholdervalue. * SK Hynix ranks No.1 in the high-bandwidth memory chipmarket, used in AI, with a 57% share. It also holds a 32% shareof the global DRAM market, used in AI chipsets and electronicdevices, making it the second-largest player after cross-townrival Samsung Electronics, according to Counterpoint. * Shares of SK Hynix closed up 5.7%, compared with a 2.7%rise in the benchmark KOSPI.
($1 = 1,495.0000 won)
(Reporting by Heekyong Yang; Editing by Harikrishnan Nair)
SK Hynix Inc is a Korea-based company primarily engaged in the manufacturing and sale of memory semiconductor products. The Company's product portfolio includes semiconductor products, such as dynamic random access memory (DRAM) and NAND flashes, used mainly in industrial electronic devices, as well as multi-chip packages (MCPs). The Company also engages in the foundry business. Additionally, the Company is engaged in the manufacturing and sale of complementary metal oxide semiconductor image sensors (CISs). CISs are used in mobile phones, laptops, tablets, medical devices, digital single-lens reflex (DSLR) cameras, camcorders, automobiles, security equipment, gaming consoles, and home appliances. The Company sells its products in both domestic and overseas markets.
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