SK Hynix Contemplates 0.5% Fee for ADR Offering

Insiders familiar with the matter indicate that SK hynix is evaluating a payment to the banks involved in the transaction equivalent to roughly 0.5% of the funds it aims to raise through a U.S. listing.

Reports state that the South Korean chipmaker has indicated a potential share issuance not exceeding 2.5% of its outstanding stock, although the definitive size of the offering remains undecided.

It is further noted that SK hynix might also provide discretionary bonuses in addition to the standard underwriting fees.

The world's second-largest memory chip manufacturer is scheduled to commence the book-building process for its American Depositary Receipts (ADRs) on July 6, with the final offering price to be set on July 9, followed by its listing on the Nasdaq the following day.

SK hynix has declined to comment.

The investment banks managing the share sale, including Goldman Sachs, JPMorgan, Citigroup, and Bank of America, did not immediately respond to requests for comment outside of regular business hours.

Last month, the company announced its plan to raise up to $29.4 billion via the U.S. market listing, positioning the deal to be among the largest of its kind globally. As a supplier to NVIDIA, SK hynix is aiming to capitalize on the intense investor appetite for stocks related to artificial intelligence.