NEW YORK, July 17, 2026, 09:09 EDT
SK hynix Inc. NASDAQ:SKHY was trading close to $152 ahead of the U.S. open on Friday. The company’s American depositary shares were approximately 22% above their Seoul equivalent, compared with a 38% premium two sessions prior.
The key indicator for investors is this compression. About 41% of the premium is gone. As of Thursday’s close, the ADS was trading just 2.2% above its $149 offer price.
| Measure | Earlier reference | Thursday close | Change |
|---|---|---|---|
| U.S. ADS price | $193.92 | $152.31 | -21.5% |
| Calculated premium versus Seoul parity | 38.0% | 22.4% | -15.6 points |
| Premium over $149 offer price | 30.1% | 2.2% | -27.9 points |
The previous comparison is based on the ADS closing price from Tuesday and the Seoul close from Wednesday. The figure for Thursday is calculated using the most recent local close of 1,842,000 won and Friday’s exchange rate. Each group of ten ADSs equals one common share.
Markets in South Korea did not open on Friday due to a holiday. At the dateline, Nasdaq was still in premarket trading.
The “when-issued” status is now in the past. SKHYV served as the provisional ticker for July 10, before the permanent SKHY symbol came into effect the next Monday. The Wall Street Journal
The subsequent focus will be on conversion. Korea Securities Depository stated that applications are expected to open following the planned July 29 domestic listing. However, the launch date remains subject to Citibank’s guidance.
The issuance of new ADRs from local shares stays limited, according to the depository. There is no restriction on the conversion of ADRs to local shares.
These rules create genuine obstacles. Ongoing settlement delays, transaction fees, and the restricted availability of ADRs could keep some of the discrepancy in place.
SK hynix completed its $26.5 billion offering on July 14, issuing 17.79 million common shares to Citibank to back 177.9 million ADSs. The company is set to announce second-quarter earnings on July 29 at 9 a.m. Seoul time.
SK Group Chairman Chey Tae-won emphasized future demand. “Memory chips will continue to be needed, so their value will trend upward over time,” he stated on Friday. The Korea Times
According to Meritz Securities senior analyst Kim Sunwoo, suppliers are currently meeting between 75% and 80% of DRAM demand. He anticipates this figure will decline to the 60% range in 2027.
The data backs up earnings but does not determine the cross-listing price.
Based on forward earnings, the U.S. listing is still trading near Micron Technology Inc. NASDAQ:MU. According to Barron’s, SK hynix is valued at 5.71 times earnings, while Micron’s multiple is 5.93 times. However, this discount to Micron does not eliminate the premium over SK hynix’s domestic shares.
Market flows could play a bigger role before July 29. This week, Korean margin loans reached 34.37 trillion won. Assets in a double-leveraged SK hynix fund totaled $7.78 billion.
From August 5, regulators will raise the minimum cash balance required for single-stock leveraged ETFs to 30 million won, a threefold increase.
The ADS showed minimal movement before the opening bell. Nasdaq 100 futures declined 1.55%. The Philadelphia semiconductor index remained over 19% lower from its late-June peak.
Risks: The conversion process could be delayed, although the issuance cap supports scarcity. If forced deleveraging occurs, chips experience further declines or the won softens, the gap might expand once more.
The coming week will reveal if the 22% difference persists as both listings resume trading. A more significant test occurs July 29, with quarterly results and conversion processes set to take place.
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