South Korean chipmaker SK Hynix has raised $26.5bn in its New York share offering, marking the largest ever listing by a foreign company in the United States.

The company, a key supplier to AI chip giant Nvidia, said on Thursday it sold 177.9 million American depositary shares at $149 each. Trading is set to begin Friday on the Nasdaq.

SK Hynix's market value topped $1tn in its home country in May, lifted by surging demand for AI chips. Its share price has more than tripled in South Korea this year.

Seoul National University finance professor Jaewon Choi noted that the US listing gives SK Hynix easier access to vast potential investment from the world's largest economy, which has fewer barriers than South Korea.

Traders are closely watching the listing as a "yardstick to test the water" for whether investor enthusiasm for memory chip makers will continue, Choi said. The AI boom has triggered a rush of companies raising money on stock markets.

Demand for SK Hynix's offering was reportedly over seven times the number of shares available, highlighting strong investor appetite for a key AI supply chain company.

The company has pledged major investments to develop South Korea's chipmaking and AI capabilities in coming years. Hanyang University business professor Yun Youngjin said the South Korean government likely counts on SK Hynix's US listing to raise funds supporting domestic investments. However, the Nasdaq listing carries risks, especially if investors move money toward the US and away from South Korea's stock market.

Source: www.bbc.co.uk