SK Hynix Inc.’s US-listed shares face a test on Wednesday as a lockup preventing the firm, its affiliates, and management from selling expires. The company’s American depositary receipts fell the most in three weeks on Monday, trading at a 38% premium to Korean shares—the highest among major Asian issuers. While there’s no indication SK Hynix plans additional issuance, any new supply could test demand at that premium, especially as investors question the memory-chip boom’s sustainability.
Shares of SK Hynix, Micron Technology Inc., and Samsung Electronics Co. slid between 7.7% and 33% in the three months ended September due to AI spending concerns. Gary Tan of Allspring Global Investments noted the lockup expiry isn’t fundamental but provides a technical reason to sell. Any sustained narrowing of the ADR premium may signal weakening overseas demand and impact Seoul shares, which fell as much as 2.8% on Wednesday.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing