The premium for SK hynix's American Depositary Receipts (ADRs) has surged past 50% relative to its South Korea-listed shares, a mere three days after their U.S. debut.
These ADRs jumped 27% on Tuesday, not only recouping the prior day's 9.3% loss but also adding significant further gains. Data indicates this move has pushed their premium over the ordinary shares traded in Seoul to as high as 51%, a stark contrast to the modest 3% premium seen at the pricing of last week's $26.5 billion ADR offering.
According to filings with the U.S. Securities and Exchange Commission, each SK hynix ADR represents one-tenth of an ordinary share. A premium was widely anticipated for these ADRs due to restrictions on converting ordinary shares into the U.S.-listed instruments.
Adding to the activity, options on SK hynix ADRs also commenced trading on U.S. options exchanges Tuesday. This development provides investors in the world's largest derivatives market with easier access to place bets on the volatile South Korean memory chipmaker's stock price.
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SK Hynix ADR Premium Soars to Over 50% Just Days After U.S. Listing
Deep News07:20
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