SK Hynix ADS listed on Nasdaq 12%↑, common stock 10% decline
SK Hynix's American Depositary Shares (ADS) listed on Nasdaq rose by 12.76% in the first trade, while 13the domestic common stock fell by 10% amid selling by foreign investors and profit-taking.
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SK Hynix's American Depositary Shares (ADS) closed strong in the first trade on Nasdaq compared to the offering price, linking it to diverging market performance with domestic stocks.
The ADS, listed on 10date (local time), closed at 149dollars, up 12.76% compared to the offering price of 168.01dollars.
13On 11date, at 9time, SK Hynix common stock traded at 10.55won, down 195% from the previous trading day.
The market explained that some foreign institutions suggested an 'ADS buy and common stock short sale' strategy, combined with profit-taking amid a risk-averse sentiment in the domestic stock market.
Some securities analysts noted that short-term foreign selling and profit-taking impacted stock prices. Meanwhile, the possibility of a re-evaluation of corporate value following the US listing was also mentioned for the long term.
It was reported that details about rights and exchange conditions of the ADS and common stock need to be verified through public disclosures.
The article added that trading volume and the flow of foreign investor activity could influence the direction of common stock in the future.
Sources: 파이낸셜뉴스 증권
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