South Korean memory chip giant SK hynix is set to allocate approximately 11.9 trillion won for the procurement of extreme ultraviolet (EUV) lithography equipment from ASML Holding NV, according to documents filed with regulators related to its initial public offering. The company anticipates receiving these EUV systems by December 2027.
Shares of ASML Holding NV rose more than 4% in pre-market trading on Monday following the news, with other semiconductor equipment manufacturers also seeing gains. ASML Holding NV is the sole global company capable of the commercial production and sale of EUV lithography machines. These systems are used to imprint intricate nanoscale circuit patterns onto silicon wafers. The primary customers for ASML's equipment include Taiwan Semiconductor Manufacturing Company, Intel Corporation, and Samsung Electronics.
In a report from February, ASML indicated that its next-generation chipmaking equipment is prepared for manufacturers to begin large-scale production. The price for a single unit of this new-generation equipment is around $400 million, roughly double the cost of the first-generation EUV machines.
Concurrently, SK hynix has revealed further specifics of its plans for a U.S. listing. Based on the latest regulatory filings, the company is set to launch its American IPO on Monday, aiming to raise approximately $28 billion. Riding the current wave of artificial intelligence enthusiasm, this offering is poised to become one of the largest initial public offerings in global history.
The listing will be conducted via American Depositary Receipts, providing U.S. investors with direct access while maintaining the company's existing listing on the Korean exchange. SK hynix plans to issue 17.79 million new shares in the form of ADRs on the Nasdaq. Each set of 10 ADRs will represent one ordinary share of SK hynix.
Upon listing on the Nasdaq, SK hynix is expected to become a candidate for inclusion in the Nasdaq 100 index. Such inclusion could attract passive fund inflows and help align its valuation closer to its American peers. As one of the primary beneficiaries of the global AI boom, SK hynix's stock performance has outpaced that of its main competitors, Samsung Electronics and Micron Technology.
The regulatory documents also state that the final pricing for the SK hynix listing will be determined on Thursday, with trading scheduled to commence this Friday. The company's management will conduct a global roadshow for investors this week.
In terms of fundraising scale, this offering is projected to rank as the second-largest IPO globally, following the record $85.7 billion offering by SpaceX last month and surpassing the $25.6 billion IPO of Saudi Aramco in 2019. While SK hynix's fundraising target is significantly smaller than that of SpaceX, its U.S. market debut is viewed as a crucial upcoming indicator for market sentiment, making it a focal point for global capital markets this week.
Meanwhile, the U.S. semiconductor sector has recently faced notable selling pressure due to several negative factors, including reports about potential compute resource leasing by Meta. At this pivotal moment, the market performance of SK hynix's U.S. listing may provide investors with significant insights into the future trajectory of the AI-driven bull market.
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