Periscope Analytics analyst Brian Freitas said newly listed American depositary receipts, or ADRs, of SK Hynix could trade at a valuation premium in the very near term. In his report dated July 13, Freitas estimated that the premium may reach 30% to 35% before narrowing later, citing limited passive buying for the U.S.-listed securities.
SK Hynix raised $26.5 billion in its U.S. offering, according to the report cited by BlockBeats. The company’s ADRs made a strong Nasdaq debut last Friday and closed up nearly 13%. In early trading in Seoul on July 13, however, the stock fell 10%.
The note points to a short-lived disconnect between the newly listed U.S. instrument and the underlying shares, with Freitas expecting the gap to tighten after the initial trading period.
BlockBeats reported on July 13 that Periscope Analytics analyst Brian Freitas said in a report that newly listed American depositary receipts of SK Hynix may carry a valuation premium in the short term.
Freitas estimated that the premium could reach 30% to 35% in the very near term. He added that the gap may narrow later because passive buying for the U.S.-listed securities is limited.
SK Hynix raised $26.5 billion in its U.S. offering. Its ADRs made their Nasdaq debut last Friday and closed up nearly 13%. In early Seoul trading on July 13, the stock fell 10%.
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