SEOUL, June 17 (AJP) - SK hynix confirmed Wednesday that it is actively pursuing a U.S. American Depositary Receipt (ADR) listing to expand its AI-era memory chip capacity, but denied reports that it is preparing a 100 trillion won ($72.5 billion) shareholder reward program to offset concerns about equity dilution.
The clarification came after the Korea Economic Daily reported Tuesday that the South Korean chipmaker was preparing a historic fourth-quarter shareholder return package, including a 40 trillion won share buyback, to appease investors worried about dilution from a new U.S. stock issuance.
In a regulatory filing, however, SK hynix said it is considering various ways to enhance shareholder value but has not reviewed any specific scale or figures cited in the reports.
"We are currently pursuing the ADR listing itself, but we are not in a position to say definitively whether it will take place in July or August," a company official said, adding that the final timetable remains subject to approval by the U.S. Securities and Exchange Commission.
The official also dismissed speculation surrounding an unprecedented 100 trillion won payout.
"Nothing specific has been finalized. Reports about expanding shareholder returns at year-end reflect the general stance we already announced at our shareholder meeting, so there has been no significant change," the official said.
The company first confirmed plans for a U.S. listing during its annual general meeting in March, when management disclosed that it had confidentially filed a Form F-1 with the SEC with the aim of completing the listing in the second half of this year.
At the time, Chief Executive Kwak Noh-jung pushed back against mounting retail investor concerns over potential dilution, arguing that the fundraising was strategically necessary to secure more than 100 trillion won in net cash for advanced infrastructure and next-generation AI memory investments.
SK hynix has emerged as the biggest beneficiary of the AI-driven memory boom, thanks to its dominance in High Bandwidth Memory chips, where it is estimated to control nearly 60 percent of the global market.
The company has become a key supplier to AI chip leader Nvidia, helping propel its market capitalization above 1,600 trillion won this week, compared with about 200 trillion won a year earlier.
The stock has been virtually unstoppable this year, trading above 2,512,000 won — more than tenfold its level of 242,000 won a year ago. As of Tuesday, SK hynix was the world's 13th most valuable listed company, just behind Samsung Electronics.
The company's surging profitability has also led to hefty employee profit-sharing bonuses, but analysts say management faces a delicate balancing act between rewarding shareholders and funding massive capital expenditure plans.
SK hynix is expected to raise about 40 trillion won through the U.S. ADR issuance, with much of the proceeds earmarked for infrastructure investments.
That includes the construction of four advanced fabrication plants at the Yongin semiconductor cluster, where projected costs have reportedly ballooned to around 600 trillion won.
SK hynix is scheduled to report second-quarter earnings in late July, when executives are expected to provide additional guidance on global financing plans and long-term capital expenditure strategy.
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