SK hynix Nasdaq ADR listing seen as potential support for won amid prolonged weakness

SK hynix’s planned American depositary receipt (ADR) listing on the Nasdaq next month is drawing attention as a potential catalyst for easing the won’s prolonged weakness, with the won-dollar exchange rate having remained above the 1,500 won level for nearly a month. Market experts estimate the listing could bring in as much as $30 billion to Korea. Should those funds be converted into won, the resulting increase in dollar supply could help ease upward pressure on the exchange rate and support the local currency. The major chipmaker’s board approved the issuance of new shares for the ADR offering and the Nasdaq listing last Thursday. The ADRs are scheduled to begin trading on July 10, with the subscription and settlement set for July 14. ADRs allow shares of foreign companies to be traded on U.S. stock exchanges, improving access for global investors. SK hynix plans to issue as many as 17.79 million new shares, or about 2.5 percent of its outstanding stock, as part of the Nasdaq ADR listing. Based on the company’s closing share price before the board approved the transaction, theWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times