SK Hynix Roadshow PPT Exposed: Dual Motivations of Valuation Reassessment and Capital Expansion

Odaily Planet Daily News: SK Hynix's US stock listing roadshow PPT has been exposed. It is reported that Baillie Gifford Overseas Limited, Coatue Management, and Situational Awareness Partners have each (not jointly) indicated their intention to subscribe for American Depositary Shares (ADS) in the offering, with a total subscription amount of up to $7 billion at the initial public offering price.

According to the disclosed information, SK Hynix's motivation for this listing is a dual pursuit of valuation reassessment and capital expansion. The company has long faced a valuation discount dilemma, currently trading at 6.2 times its expected P/E ratio for the next 12 months, lower than Micron Technology's 7 times. In terms of expected price-to-sales ratio, its 3.6 times is also lower than Micron's 4.6 times. The fundamental reason for this valuation gap is that US investors face obstacles in directly investing in Korean stocks. Meanwhile, the raised funds will be used for domestic capacity expansion in South Korea, including 45.5 trillion won in capital expenditure and 11.9 trillion won for the purchase of EUV lithography machines. (leinews)