Nefarious Trading
Est 2021
SKHYLISTS FRI JUL 10 ▲
000660SEOUL · $1.2T
MU~$1.1T RIVAL
FLOATONLY 2.5%
TSMADR PREMIUM ~13%
PRICED$149 · DEMAND ~$200B ▲
SKHYLISTS FRI JUL 10 ▲
000660SEOUL · $1.2T
MU~$1.1T RIVAL
FLOATONLY 2.5%
TSMADR PREMIUM ~13%
PRICED$149 · DEMAND ~$200B ▲
Special Situation · SK Hynix · The ADR Machine
The $SKHY Listing, Explained
How 2.5% of a trillion-dollar company comes to America — SKHY · 000660 · MU
$149
priced per ADS · $26.5B raised · ~$200B demand
The biggest US listing in history is only 2.5% of the company — here's how the SKHY machine works, and the one detail that decides everything.
- The DealSK Hynix priced its Nasdaq debut at $149 an ADS — a $26.5B raise with demand approaching $200B, topping Alibaba's $25B as the largest first-time US share sale by a foreign company (Bloomberg).
- The WrapperYou're buying an ADS, not Korean shares: a US bank holds the real shares in Seoul and issues receipts — 10 ADSs = 1 share. Only 2.5% floats here, because Korean law forces parent SK Square to keep 20%.
- The QuestionCan new ADSs be freely minted from Seoul shares? If yes, one global price. If capped — the Korean norm — SKHY trades at a premium Americans can't arb away. TSMC's averaged ~21% this past year.
§ Plain English — The Machine
An ADS is a claim ticket. The real shares never leave Korea — a US depositary bank holds them through a Seoul custodian and prints tickets against the pile: 10 per share, trading on Nasdaq in dollars. Dividends flow down the same pipe — won to dollars, fees clipped on the way.
Creation runs left to right, cancellation right to left — which direction is restricted is the whole ballgame.
§ The Deal, By The Numbers
| Term | Detail |
|---|---|
| RAISE | ~$26.5B — all new shares, nobody cashing out. Largest first-time US share sale by a foreign company ever (tops Alibaba's $25B) |
| SIZE | 177.9M ADSs = 17.79M common shares = ~2.5% of the company |
| RATIO | 10 ADSs = 1 Korean share · priced at $149/ADS — roughly 10% under Seoul parity (~$166) |
| WHY 2.5% | Korean holding-company law: SK Square must keep ≥20%, capping how much new stock can be printed |
| DEMAND | Approaching $200B in orders for a $26.5B deal · top 25 accounts took ~67% (Bloomberg) |
| BANKS | BofA · Citi · Goldman · JPMorgan as global coordinators |
| PROCEEDS | Yongin fab Phase 1 · Cheongju P&T7 packaging · EUV machines — pure AI-memory capex |
Technically a follow-on + secondary listing, not an IPO — the IPO playbook without price discovery. Seoul stays primary.
§ SKHY vs MU — Same Trade, Different Plumbing
Two ~$1.1–1.2T memory giants riding HBM. The difference is what you actually own.
| SKHY | MU | |
|---|---|---|
| YOU OWN | A receipt on 1/10th of a Korean share held by a bank | Common stock, directly |
| US FLOAT | ~2.5% of the company | Effectively 100% |
| PRICE SET | In Seoul — SKHY reacts overnight | On Nasdaq, live |
| INDEX | Not S&P 500 eligible | In the S&P 500 — passive money must own it |
| DIVIDENDS | Won → USD, depositary fees + Korean withholding | USD, qualified treatment |
| HBM | ~56% share — the leader (IDC) | ~20% share, sold out through 2026, ~$100B contracted |
MU = clean, index-included exposure. SKHY = the HBM king through a wrapper, priced in Seoul while America sleeps.
§ Head to Head — Financials & Market Share
Same calendar quarter, side by side (SK Hynix Q1 CY2026 vs Micron's Feb–May FQ3 2026). Both are printing money at levels no memory company ever has — the difference is what you pay for it.
| Metric | SKHY | MU |
|---|---|---|
| REVENUE | $35.5B (+198% YoY) | $41.5B — 5th straight record |
| OP PROFIT | $25.4B · ~72% margin | ~$33B · ~80% margin (84.9% gross) |
| NEXT Q | HBM4 ramping — sole mass producer since Feb | Guiding $50B revenue · ~86% gross |
| MKT CAP | ~$1.2T at listing | ~$1.1T |
| FWD P/E | ~7x | ~12x |
| LOCKED IN | NVIDIA supply secured through 2030 | HBM sold out through 2026 · ~$100B binding AI contracts |
Micron runs the fatter margin and bigger quarter right now; SK Hynix owns the crown jewel. HBM trackers disagree — IDC pegs SK Hynix at 56.4%; Counterpoint has Micron at ~21%, actually overtaking Samsung in recent quarters.
§ The Bottom Line — Why SKHY Over MU
Same supercycle, two tickets — and SKHY is technically the leader at half the price. The gameplan: I'm personally in at the $149 pricing as a quick trade — not a hold. The math says it should be worth roughly $165–170 on release, and it priced cheaper than that.
Do the math yourself before you buy: grab the live Seoul price at finance.yahoo.com/quote/000660.KS, convert to USD, divide by 10 — that's what SKHY is actually worth right now. Anything above that number is premium you're choosing to pay.
- The Edge~56% of HBM, NVIDIA's #1 supplier, ~7x forward earnings vs ~12x for MU — the leader at half the price.
- The Pricing$149 an ADS · $26.5B raised · ~$200B of demand · top 25 accounts took ~67% (Bloomberg). And $149 × 10 = $1,490 vs ~$1,660 in Seoul — priced ~10% under parity.
- The PlayQuick trade, not a hold. Expect a 10–20% jump from the $149 pricing — def go for it sub-$150. I'll be placing my orders at $165–170, roughly what the math says it's worth on release. Take the move, get out.
Rating: SKHY 8.5 · MU 8.0 — MU stays the cleaner vehicle. My personal position, not a recommendation. NFA · DYOR.
Want the full SKHY breakdown before it lists Friday?
Join the Discord to get it! →discord.gg/nfrs · @Nefarioustrading
Nefarious Trading
Equity research and trading commentary — AI infrastructure, semiconductors, and special situations.
Sources
Bloomberg — priced at $149/ADS, ~$26.5B raise, demand approaching $200B, top 25 accounts ~67%, largest first-time US share sale by a foreign company (tops Alibaba's $25B) · SK Hynix amended SEC registration (Jun 30, 2026) — 177.9M ADSs, 10:1 ratio · SK Square ≥20% holding-company requirement · TSMC ADR premium ~21% 1-yr avg / ~13% current (Bloomberg/Acadian) · SK Telecom 20-F & deposit agreement (program-cap mechanics) · Alibaba 2014 $21.8B prior ADR record · Micron ~$1.1T cap, HBM sold out through 2026. Compiled Jul 6, 2026.
Bloomberg — priced at $149/ADS, ~$26.5B raise, demand approaching $200B, top 25 accounts ~67%, largest first-time US share sale by a foreign company (tops Alibaba's $25B) · SK Hynix amended SEC registration (Jun 30, 2026) — 177.9M ADSs, 10:1 ratio · SK Square ≥20% holding-company requirement · TSMC ADR premium ~21% 1-yr avg / ~13% current (Bloomberg/Acadian) · SK Telecom 20-F & deposit agreement (program-cap mechanics) · Alibaba 2014 $21.8B prior ADR record · Micron ~$1.1T cap, HBM sold out through 2026. Compiled Jul 6, 2026.
One trader's map of the deal — do your own research. Deal terms are from the pre-pricing filing and can change at pricing; the deposit agreement's conversion terms were not yet public when written. Premium/discount dynamics are historical patterns, not predictions. Nothing here is investment advice or a recommendation on SKHY, 000660.KS, MU, TSM or any security. © 2026 Nefarious Trading.