Key Takeaways
- SK Hynix (SKHY) successfully raised $26.5 billion in its Nasdaq debut, marking the largest-ever U.S. initial public offering by a foreign company, surpassing Alibaba's 2014 record.
- Shares of the South Korean chipmaker opened at $170, a 14% jump over the initial offer price of $149, reflecting intense investor appetite for AI-linked hardware.
- UK Culture Secretary Lisa Nandy indicated that tax increases are being discussed to fund a massive £60 billion increase in defence spending over the next four years.
- The SK Hynix offering was more than seven times oversubscribed, with total orders reportedly reaching approximately $200 billion from major institutional investors.
SK Hynix Makes Historic Wall Street Debut Amid AI Frenzy
South Korean memory giant SK Hynix (SKHY) made history on Friday, July 10, 2026, as its American Depositary Receipts (ADRs) began trading on the Nasdaq. The company priced its offering of 177.9 million ADRs at $149 each, raising a staggering $26.5 billion. This figure officially crowns the deal as the largest U.S. IPO by a foreign issuer, eclipsing the $25 billion raised by Alibaba in 2014.
Investor demand was overwhelming, with the book-building process recording oversubscription of more than seven times. Shares opened for conditional trading under the temporary ticker SKHYV at $170, representing a 14% premium over the offer price. The stock is expected to transition to the permanent ticker SKHY on July 13, following the completion of the settlement process.
The successful listing is seen as a strategic move to bridge the "Korea Discount"—the valuation gap between SK Hynix and its U.S. rival Micron Technology (MU). As the world’s leading supplier of High-Bandwidth Memory (HBM), a critical component for Nvidia (NVDA) AI accelerators, SK Hynix is leveraging its dominant 56.4% market share in the HBM segment to attract global capital.
UK Government Weighs Tax Hikes to Secure Defence Budget
In London, the government is signaling a shift toward higher taxation to meet escalating security requirements. Culture Secretary Lisa Nandy hinted that "discussions are ongoing" regarding tax rises to support the Defence Investment Plan (DIP). The plan aims to boost the UK's defence budget to 3.5% of GDP by 2035, a target recently reaffirmed by Prime Minister Keir Starmer at the NATO summit.
The funding gap is significant, with current estimates suggesting an additional £15 billion is required for the DIP between 2026 and 2030. Analysts at the Office for Budget Responsibility (OBR) noted that the UK's tax-to-GDP ratio is already forecast to rise to 43% by 2030-31. Treasury officials have warned that meeting the new defence commitments could necessitate the equivalent of 3p to 4p on all rates of income tax.
The move follows the high-profile resignation of former Defence Secretary John Healey, who stepped down over concerns regarding the lack of a clear funding path for military modernization. The government is currently evaluating departmental cuts alongside potential revenue-raising measures to address a £4.7 billion funding gap identified in the current fiscal year's defence projections.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.