Svmuu News: SK Hynix’s U.S. IPO Roadshow Presentation Leaked,It is reported that Baillie Gifford Overseas Limited, Coatue Management, and Situational Awareness Partners have each (rather than jointly) expressed their intention to subscribe for American Depositary Shares (ADS) in this offering, totaling up to $7 billion, at the initial public offering price.
According to the disclosure, SK Hynix’s motivation for this IPO stems from a dual need for valuation revaluation and capital expansion. The company has long faced a valuation discount and is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 6.2x, lower than the 7x ratio of Micron;measured by the forward price-to-sales ratio, its 3.6x multiple is also lower than Micron’s 4.6x;The root cause of this valuation gap lies in the barriers U.S. investors face when investing directly in South Korean stocks, coupled with the fact that the raised funds will be invested in expanding domestic production capacity in South Korea, including 45.5 trillion won in capital expenditures and 11.9 trillion won for the purchase of EUV lithography systems. (leinews)