SK Hynix ADR lock-up period expires, with a premium of 38% compared to Korean stocks

The U.S. stocks of storage chip company SK Hynix will face the end of the lock-up period on Wednesday, which prohibits the company, its affiliates, and management from selling shares. Meanwhile, the market is questioning how long the storage chip boom can last. The company's American Depositary Receipts recorded their largest drop in three weeks on Monday.

As of Tuesday's close, SK Hynix ADR is trading at a 38% premium relative to its domestic Korean shares, the highest among major Asian issuers tracked by Bloomberg. Despite a recent pullback, this price is still more than 20% higher than the listing price. There are currently no signs that the company plans to issue shares again like some Asian artificial intelligence companies have recently done.