SK Hynix launches $28 billion US listing, draws $7 billion in investor interest

July 6 (Reuters) - South Korean chipmaker SK Hynix on Monday launched a U.S. share sale to raise 43 trillion won ($28.07 billion) and drew indications of interest for up to $7 billion from major investors, as it capitalises on the global AI boom with one of the world's largest new share sales.

Baillie Gifford Overseas, investment funds managed by Coatue Management ‌and Situational Awareness Partners have each separately indicated interest in buying up to a combined $7 billion worth of SK Hynix's American depositary receipts, or ADRs, SK Hynix said.

Baillie Gifford Overseas, Coatue ‌Management and Situational Awareness Partners did not immediately respond to requests seeking comment.

The company will sell 17.79 million new shares through the ADRs on the Nasdaq; 10 ADRs will represent one common share and a Monday filing gave a reference price of 242,500 won ​per ADR, based on SK Hynix's July 3 closing price in Seoul.

The deal comes as Asian chip companies tap strong global demand for AI-related stocks. Taiwan's Unimicron Technology is also seeking to raise about $1.4 billion through a sale of global depositary shares, or shares listed overseas that represent its local stock.

SK Hynix's shares ended Monday down 3.4% at 2,343,000 won, but the stock is still up about 260% this year. South Korea's KOSPI was down 0.5% on Monday.

Memory chip stocks have been volatile in recent sessions due in part to renewed investor concerns about how long the boom would last.

"We are in the midst of a memory super cycle, with all three ‌major suppliers - Samsung, SK Hynix, and Micron - riding the AI driven demand ⁠wave," said Di Zhou, portfolio manager at Santa Fe, New Mexico-based Thornburg Investment Management with $60 billion in assets. It owns SK Hynix's Korean ordinary shares.

She added that SK Hynix's ADR listing was positive because it would broaden the company's investor base and potentially narrow its valuation gap with U.S rival Micron.

"While market volatility has been ⁠quite high recently, I would expect demand for SK Hynix shares to remain relatively robust," said Albert Yong, a managing partner at Petra Capital Management.

South Korea last week unveiled a sweeping industrial strategy centred on semiconductors and AI, including a $576 billion chip investment program in the country's southwest to help spread returns from the boom.

SK Hynix and Samsung Electronics will anchor the investment program, the government said.

South Korean President Lee Jae Myung on Monday ordered officials to move ​quickly ​to get to work on major chip and AI projects announced last week.