SK Hynix Opens 3-5 Day ADR Conversion Test for $26.5 Billion US Listing Premium
Updated
Updated · Yahoo Finance · Jul 29
SK Hynix Opens 3-5 Day ADR Conversion Test for $26.5 Billion US Listing Premium
3 articles · Updated · Yahoo Finance · Jul 29
Summary
Wednesday and Thursday mark the start of SK Hynix’s two-way share conversion, letting investors swap Seoul-listed stock and US ADRs for the first real test of whether arbitrage shrinks the US premium.
Citigroup will open ADR issuance and cancellation after SK Hynix lists the underlying common shares in Korea, with market participants expecting conversions to take about three to five days.
A 2.5% cap on shares convertible into ADRs is already fully used, so new Seoul-to-US conversions cannot happen unless existing ADR holders first cancel receipts and switch back to Korean shares.
That bottleneck may ease if the premium holds: Chairman Chey Tae-won said on July 10 the company is open to issuing more ADRs if investor returns stay strong and the share price remains stable.