SK Hynix Plans to Pay 0.5% Base Underwriting Fee to Investment Banks in ADR Issuance

CoinFeed July 4 news, according to Bloomberg citing people familiar with the matter, the world's second-largest memory chip maker SK Hynix is advancing its U.S. ADR issuance plan, and this deal is expected to rank among the largest stock offerings in global history. According to details of the transaction negotiations, SK Hynix plans to pay a base underwriting fee of 0.5% of the total funds raised to the investment banks participating in the underwriting; at the same time, the company may provide discretionary incentive bonuses to the investment banks on top of the base fee. Previously, SK Hynix disclosed that the new shares to be issued this time will not exceed 2.5% of the company's total share capital, but the final fundraising scale has not yet been determined, and the total underwriting fee will vary with the size of the issuance. Currently, discussions among all parties regarding fees and issuance terms are still ongoing, and there is room for adjustment in the final agreement. SK Hynix and the underwriting investment banks have not yet responded to the rumors.