The premium for SK Hynix Inc. American depositary receipts compared to their shares listed in Korea has surged beyond 50%, occurring just three days following their initial trading in the United States.

The ADRs advanced 27% on Tuesday, more than offsetting a 9.3% decline from the prior session, which was influenced by a significant selloff in South Korea that affected US trading. This movement has increased their premium over the common shares traded in Seoul to 51%, based on Bloomberg-compiled data, a substantial rise from the 3% differential at which they were priced during last week's $26.5 billion offering.

As per a filing with the US Securities and Exchange Commission, each SK Hynix ADR represents one-tenth of a common share. The ADRs were anticipated to trade at a premium to the equivalent share price in Seoul, attributed to limitations on converting common stock into the US-traded instruments.

The Tuesday surge coincided with the commencement of options trading on SK Hynix ADRs on US options exchanges, providing participants in the world's largest derivatives market with more straightforward exposure to the South Korean memory chipmaker, known for its price volatility.

Initial trading volatility for the ADRs was driven by investor apprehension regarding elevated valuations within the AI sector and concerns that semiconductor investment may be approaching a cyclical high.

The US listing of SK Hynix has emerged as a key indicator for gauging appetite for international listings, with Nasdaq Inc. President Nelson Griggs noting that its positive reception is encouraging other global firms to evaluate the US market for potential initial public offerings or similar ADR listings.