SK Hynix Roadshow PPT Revealed: Dual Motivation of Valuation Revaluation and Capital Expansion

Odaily Planet Daily reported that SK Hynix's US IPO roadshow PPT has been revealed. According to reports, Baillie Gifford Overseas Limited, Coatue Management, and Situational Awareness Partners have each (not jointly) expressed interest in subscribing for up to $7 billion of American Depositary Shares (ADS) in the offering at the initial public offering price.

According to the disclosed information, SK Hynix's motivation for this listing is the dual pursuit of valuation revaluation and capital expansion. The company has long faced a valuation discount, currently trading at 6.2 times forward 12-month P/E, lower than Micron Technology's 7 times; and at 3.6 times forward P/S, also lower than Micron's 4.6 times. The fundamental reason for this valuation gap is the barriers for US investors to directly invest 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 EUV lithography machine procurement. (leinews)