Douglas Research Advisory analyst Douglas Kim said SK Hynix’s ADR, set to begin trading on Nasdaq on Friday, could trade at a short-term premium of up to 17% versus its South Korea-listed shares. The $26.5 bln issuance would be the largest foreign-company listing on record. Kim cited two drivers of the expected ADR premium: some large institutional mandates limit investors to US-listed securities, and a potential narrowing of SK Hynix’s valuation discount to Micron and NVIDIA as investors consid

Douglas Research Advisory analyst Douglas Kim said SK Hynix’s ADR, set to begin trading on Nasdaq on Friday, could trade at a short-term premium of up to 17% versus its South Korea-listed shares. The $26.5 bln issuance would be the largest foreign-company listing on record. Kim cited two drivers of the expected ADR premium: some large institutional mandates limit investors to US-listed securities, and a potential narrowing of SK Hynix’s valuation discount to Micron and NVIDIA as investors consider strategies from outright ADR purchases to long-short pair trades. In Thursday Seoul trade, SK Hynix’s Korean shares rose as much as 1.0% to 2.208 mln won.