South Korea Purchases $20 Billion in U.S. Dollars from SK hynix Post-IPO
SK hynix (SKHY) made headlines with its record-breaking IPO on the Nasdaq, raising approximately $26.5 billion through American depositary receipts priced at $149 each. The stock surged 13% on its first day of trading and is now among South Korea's most valuable companies after Samsung. SK hynix has seen a massive surge in value over five years but recently fell more than 40% from all-time highs. In response to the large inflow of dollars, South Korea’s Foreign Exchange Stabilization Fund purchased $20 billion worth of U.S. dollars directly from SK hynix through over-the-counter transactions. This move aimed to stabilize the Korean won and prevent currency volatility following a 17-year low in June. The purchase also provided additional foreign exchange reserves at a time when they were under pressure. The IPO was oversubscribed by more than seven times, reflecting strong global investor demand for SK hynix stock. Recent earnings showed significant growth with $51.3 billion in revenue and operating income of about $39 billion.
Topics: IPO memory chips SK hynix U.S. listing