SK Hynix Roadshow PPT Revealed: Dual Motives of Valuation Reassessment and Capital Expansion for IPO

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

According to disclosed information, SK Hynix's motivation for this listing is driven by the dual demands of valuation reassessment and capital expansion. The company has long faced a valuation discount dilemma, currently trading at 6.2 times forward 12-month price-to-earnings ratio, lower than Micron Technology's 7 times; measured by forward price-to-sales ratio, 3.6 times is also lower than Micron's 4.6 times. The fundamental reason for the valuation gap lies in the obstacles 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. (Lei News)