SK Hynix Completes Record $26.5 Billion Nasdaq IPO, Surpasses Alibaba as Largest Foreign Offering on Wall Street
South Korean memory chip manufacturer SK Hynix finalized its initial public offering (IPO) on the Nasdaq last weekend, raising approximately $26.5 billion. This marks the largest foreign IPO in Wall Street history, surpassing Alibaba's $25 billion offering from 12 years ago. On its first day of trading, SK Hynix's stock surged 12.8%, pushing its market capitalization close to $1.2 trillion, making it the fourth-largest chip company on Wall Street behind Nvidia, TSMC, and Broadcom.
The IPO attracted seven times oversubscription, reflecting strong investor demand despite recent volatility in AI sector stocks and geopolitical tensions such as the fragile US-Iran ceasefire. SK Hynix, a key supplier of memory chips essential for AI infrastructure, has seen its revenues jump 198% year-over-year in Q1 2025 to 52.6 trillion Korean won (about $35.1 billion), with profits soaring nearly 400% to 40.3 trillion won ($26.9 billion). The company benefits from rising average selling prices amid high demand for DRAM and NAND memory products.
SK Hynix's Nasdaq listing aims to broaden its investor base beyond South Korea, where institutional Israeli investors had minimal exposure prior to the IPO. Israeli insurer Phoenix was the only notable institutional holder before the offering. The company also has sales operations in Israel through its subsidiary Solidigm, acquired from Intel for $8.8 billion, which focuses on NAND memory.
The IPO positions SK Hynix as a major player in the global memory market, competing with Samsung Electronics and Sandisk, the latter founded by Israeli-American Eli Harari and employing hundreds in Israel. Analysts remain cautiously optimistic about the memory sector's cyclical nature but acknowledge the strong global appetite for AI infrastructure as a key growth driver. Portfolio manager Jung In Yoon of Fibonacci Asset Management noted the robust demand for the IPO despite recent market fluctuations, while other experts advised investors to consider risks given historical volatility in memory stocks.
