SEOUL, July 7 (Reuters) – SK Hynix (000660.KS), is expected to bring U.S. dollars into the country by around July 15, converting a part of the funds it raises in its offering of American depositary receipts (ADRs) into the won, a source familiar with the matter said on Tuesday.
The South Korean chipmaker launched a U.S. share sale on Monday to raise 43 trillion won ($28.07 billion), one of the world’s largest new share offerings ever, as it capitalises on the global AI boom.
SK Hynix did not immediately respond to an emailed request for comment.
While the ADRs are denominated in the greenback, SK Hynix has said it will use at least part of the proceeds for building two new factories in South Korea and buying chipmaking equipment. That may offer some support to the won that is currently hovering around a 17-year low versus the dollar.
Since the relevant funds are scheduled to be deposited on the 15th, spot market transactions could emerge around that time, the source said, asking not to be named due to internal policy.
Only a small portion of it is expected to be deposited, with the rest likely entering the market via FX forward and spot transactions during July and August, the source added. ($1 = 1,526.8000 won)
Reporting by Yena Park, Cynthia Kim and Jihoon Lee; Editing by Christian Schmollinger and Muralikumar Anantharaman.
