The premium of SK Hynix’s American depositary receipts (ADRs) over its South Korea-listed shares surged to more than 50% just three trading days after their Wall Street debut, drawing comparisons with TSMC’s ADR premium, which soared to nearly 100% during the dot-com bubble in the early 2000s.
SK Hynix ADRs jumped 27% on Tuesday, recovering all losses recorded during a 9% crash in the previous session when a massive selloff in South Korea’s stock market bled into Wall Street. This pushed the ADRs’ premium over the South Korean shares to 51%, according to data compiled by Bloomberg, far above the 3% gap they priced at last week in the $26.5 billion offering.
