Key Takeaways:
SK Hynix plans a shareholder return program of up to 100 trillion won ($66.4 billion) after completing its US ADR listing, a person familiar with the matter said.
"The feedback from global institutional investors during our roadshow has been tremendously positive," the person said, citing AI demand and the company's competitive position in the memory-chip market.
The program, expected in the fourth quarter, will include share buybacks of about 2% of outstanding stock and cash dividends, according to South Korea's Economic Daily. Proceeds from the new share issuance tied to the ADR listing will fund AI infrastructure projects, including the Yongin semiconductor cluster with total construction costs estimated at 600 trillion won.
The move positions SK Hynix to reward shareholders while raising capital for expansion at a time when its market capitalization has surged to 1,697 trillion won ($1.1 trillion), making it the third Asian company to cross the $1 trillion threshold after TSMC and Samsung Electronics.
SK Hynix made a confidential filing with the US Securities and Exchange Commission in March for a Nasdaq listing, with SEC approval expected as soon as the week of June 22 and trading potentially beginning by August, people familiar have said. The offering could raise as much as $14 billion, a source said in March.
The share buyback will partially offset dilution from the new share issuance. Chey Tae-won, the SK Group chairman, is expected to see his effective control stake in SK Hynix edge up to about 21% from 20.5% through the combined transactions, the Economic Daily reported.
The company expects 2025 operating profit to exceed 250 trillion won, a record driven by its dominance in high-bandwidth memory chips used in Nvidia's AI accelerators. SK Hynix shares have gained about 252% this year, lifting its market value past the $1 trillion mark in May.
The shareholder return plan signals management's confidence in sustained cash flow generation from AI-driven memory demand. Investors will watch for the SEC's formal approval of the ADR listing, expected in the coming weeks.
This article is for informational purposes only and does not constitute investment advice.
