SK hynix has revised down the estimated fundraising size for its American Depositary Receipt (ADR) offering due to a recent share price drop, though the number of ADRs to be issued remains unchanged, with the final price to be set through a bookbuilding process.
According to a regulatory filing, the company has lowered the estimated offering size from approximately 45.45 trillion won (about $29 billion) to around 43.14 trillion won (roughly $28 billion). This adjustment stems from an update to the reference share price, which was changed from the closing price of 2.555 million won on June 23rd to the closing price of 2.425 million won on July 3rd, representing a decline of about 5%. This price movement led to the estimated reduction in proceeds of approximately 2.31 trillion won (around $1 billion).
It is important to note that since the total number of ADRs to be issued is unchanged, this downward revision is solely a result of the share price movement and is not a signal of the company's reduced financing appetite. Despite the updated reference price, SK hynix emphasized that the final offering price and actual funds raised will still be determined via the bookbuilding process. This procedure typically involves underwriters soliciting bids from institutional investors, meaning the final price may differ from the current reference price.
The bookbuilding process is scheduled to commence on July 6th.
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