SK Hynix shares continue see-saw moves as US listing plans sends stock higher by 12%

Shares of South Korean chip manufacturer SK Hynix Inc. surged another 12% on Thursday, June 25, after the company unveiled plans for listing its shares in the US markets in the form of American Depository Receipts (ADRs).

SK Hynix is looking to raise 45.45 trillion won as part of its US listing. The stock has gained over 800% in the last one year, taking its market capitalization past the mark of $1 trillion.

The company expects the ADRs to begin trading by July 10. The proceeds from the IPO are likely to be used to build additional capacity and to buy extreme ultraviolet lithography machines.

In case the size does happen to be what the company intends, it will be among the top three first-time share sales in history and on par with Saudi Aramco's $29.4 billion IPO in 2019, according to Bloomberg data.

Analysts tracking the company believe that this move will boost the company's valuations, and also allow greater foreign investor access. They added that the focus of the market will shift from demand to execution, particularly SK Hynix's ability to expand its HBM capacity and deliver on aggressive production targets.

Earlier in the week, shares of SK Hynix tanked after a local media reported that the company is looking to shift its priorities from the high-margin HBM chip to the low cost DRAM memory chips, whose shortfall in the market is a lot more severe. The resultant fall in the stock also took down shares of rival Samsung and led to the KOSPI closing at a 10% lower circuit.

The stock reversed course over the next two sessions after the US listing plans. The stock is up 314% so far this year.