SK Hynix Inc’s (NASDAQ:SKHYV) Seoul-listed shares tumbled more than 12% on Monday as investors took profits following the artificial intelligence memory-chip maker’s blockbuster Nasdaq debut last week, raising over $26 billion.
Seoul Shares Tumble After U.S. Listing
The Seoul-listed shares fell 12.89% to KRW 1.89 million ($1,253.16), extending losses through the morning session.
The stock opened at KRW 2.113 million ($1,401) and touched an intraday low of KRW 1.892 million ($1,253), compared with Friday’s close of KRW 2.180 million. ($1,445.51)
In its Nasdaq debut on Friday, the semiconductor company sold American Depositary Receipts at $149 each and opened about 14% above the offer price at $170.
Analysts Cite Share Supply, Valuation Uncertainty
Ryu Young-ho, a senior analyst at NH Investment & Securities, told Reuters that investors were taking profits following the U.S. listing, while sentiment was also weighed down by caution ahead of SK Hynix’s second-quarter earnings on July 29.
Daniel Yoo, global strategist at Yuanta Securities, said in an interview with CNBC that investors remain uncertain about the outlook for memory demand, future supply and the appropriate valuation for memory-chip companies.
Yoo also said the domestic selloff reflected the additional share issuance tied to SK Hynix’s U.S. listing, describing the move as a “correctional period” rather than a change in the company’s long-term fundamentals.
Seoul-listed shares of SK Hynix have soared 188.18% year-to-date and 550.33% over the past year.
Price Action: Nasdaq-listed shares closed 12.76% higher in their debut at $168.01 and extended those gains with a further 2.43% rise in after-hours trading.
Benzinga edge rankings indicate SK Hynix has a negative price trend across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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