The premium for SK Hynix Inc. American depositary receipts over their Korean-listed shares soared to more than 50%, just three days after making their US trading debut.
The ADRs gained 27% on Tuesday, more than recovering from a 9.3% drop a day earlier when a record selloff in South Korea bled into the US session. That's pushed their premium over the Seoul-traded common shares to 51%, according to data compiled by Bloomberg, far above the 3% gap they priced at last week during their $26.5 billion offering.
Each SK Hynix ADR is equivalent to a 10th of a common share, according to a filing with the US Securities and Exchange Commission. The ADRs had been expected to trade above the equivalent share price in Seoul, due to restrictions on exchanging common stock for the US instruments.
Tuesday's jump came as options on SK Hynix ADRs began trading on US options exchanges, giving traders in the world's largest derivatives market easier access to the volatile South Korean memory chipmaker.
ALSO READ: SK Hynix ADRs Shoot 17% After Nasdaq Debut As Investors Raise Bet On Memory Chip Giant
Early volatility in ADR trading was stoked by concerns about stretched valuations across the AI ecosystem and worries that spending on semiconductors may be reaching a peak.
SK Hynix's US listing has become a closely watched gauge of demand for overseas offerings, with Nasdaq Inc. President Nelson Griggs saying its success is spurring other international companies to consider the US for either initial public offerings or similar ADR sales.
ALSO READ: Chip Stocks Lose Spark: Micron, SanDisk, Intel Plunge Up To 8% On SK Hynix Jitters
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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