SK Hynix drops 15% in Seoul after $26.5 billion Nasdaq debut
Why it matters: The sell-off helped drive the Kospi down 9% and triggered a 20-minute trading halt in South Korea.
SK Hynix shares fell more than 15% in Seoul on Monday, their biggest one-day drop on record or in nearly two decades, as investors took profits after the chipmaker’s Nasdaq debut last week. The company had raised about $26.5 billion by pricing ADRs at $149, with the US-listed shares opening at $170 and closing Friday at $168 after an initial surge. The stock slide, along with losses in Samsung Electronics, helped send the Kospi down 9% and set off a 20-minute trading halt. Analysts said sentiment also weakened on worries that earnings optimism had run too far and that future factory buildouts could eventually ease today’s tight memory-chip supply.