Serenity, known on X as the "white-haired stock god," said SK hynix’s U.S. depositary receipt, traded under ticker SKHY, is currently priced at a premium of more than 25% to the company’s Korea-listed shares. According to the post, the conversion mechanism between the ADR and the local Korean stock is scheduled to open on July 29, a change that could create arbitrage opportunities and narrow the price gap between the two markets.
Serenity said only about 2.5% of SK hynix shares are currently in the form of circulating U.S. ADRs, while another roughly 22.5% of shares could still be converted. Once the channel opens, arbitrage capital may buy the Korean-listed shares and convert them into ADRs to capture the spread. In Serenity’s view, that process could lift the Korean share price or put pressure on the U.S.-listed ADR price as the premium compresses.
Odaily reported that Serenity said in a post on X that SK hynix’s American depositary receipt, SKHY, is trading at a premium of more than 25% to the company’s Korea-listed shares.
Serenity said the conversion mechanism between the ADR and the Korean shares will officially open on July 29. That could create room for arbitrage and push the price gap between the two listings to narrow.
Serenity also said that only about 2.5% of SK hynix shares are currently circulating as U.S. ADRs, while another roughly 22.5% of shares still have room to be converted. Once the conversion channel opens, arbitrage funds may profit by buying the Korean local shares and converting them into ADRs, a move that could lift the Korean stock price or weigh on the U.S.-listed ADR price.
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