Wall Street banks hit a $260 million jackpot on SK Hynix’s mega deal

SK Hynix’s banks earned nearly $260 million in fees from the South Korean chipmaker’s US share sale, giving Wall Street a richer payday by percentage than last month’s record SpaceX listing.

The fee pool shows how strongly banks can still monetise the AI capital-raising boom, even when headline economics look thinner than in traditional initial public offerings.

SK Hynix raised about $26.5 billion after pricing its American depositary receipts at $149 each, turning investor demand for high-bandwidth memory into one of the biggest equity deals on record.

AI demand delivers a fee windfall

The fees on the SK Hynix sale equalled about 0.97% of the total amount raised, according to company filings.

That rate was higher than the 0.67% earned by bankers on SpaceX’s $75 billion listing, where fees totalled about $500 million.

The comparison matters because SpaceX was the larger deal and eclipsed Saudi Aramco’s 2019 record.

SK Hynix, however, gave advisers a better return on every dollar raised.

That reflects the strength of investor appetite for AI-linked companies, and the complexity of placing such a large overseas equity sale.

The deal also came during a powerful rally in memory stocks, with SK Hynix benefiting from its leadership in high-bandwidth memory used in AI servers.

Citi takes the largest share

Citigroup earned more than $70 million from the SK Hynix transaction, according to a person familiar with the matter.

That was about 20% more than other banks on the deal, helped by its role as both joint global coordinator and depositary bank.

Bank of America, Goldman Sachs and JPMorgan were also global coordinators.

Their presence underlines how important the transaction was for equity-capital-markets desks, where large technology offerings remain among the most attractive mandates.

For banks, the timing was useful. Equity issuance has improved as AI demand pulls capital into semiconductors, cloud infrastructure and data-centre supply chains.

But large listings are still not plentiful enough for advisers to ignore a fee event of this scale.

Premium pricing shows investor appetite

SK Hynix priced the ADRs at a 2.7% premium to its average Seoul share price over the previous three days.

That is notable because cross-border listings often need a discount to attract global buyers.

Demand was helped by the company’s position in the AI supply chain and by limited direct US-listed alternatives for investors seeking exposure to Korean memory chips.

The sale was also reported to have attracted orders well above the available shares, reinforcing the view that investors are still willing to pay for AI-linked growth.

The listing gives SK Hynix fresh capital for factories and equipment. For its advisers, it also proves that the AI boom is not only lifting chip stocks.

It is also reviving the fee pool around mega equity deals.

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