SK Hynix considering 0.5% fee payout in ADR offering, Bloomberg News reports

July 4 (Reuters) - SK ‌Hynix is considering ​paying ​about 0.5% of the proceeds from its U.S. listing to banks working on the deal, Bloomberg ‌News reported on Saturday citing people familiar with the ⁠matter.

• The South Korean chipmaker has indicated it could issue ‌up to 2.5% of its ‌outstanding shares, although the final size of the offering has not been determined, the report said.

• SK ​Hynix may also pay discretionary incentives on top of the base underwriting fee, the report added.

• ⁠The world's second-largest memory chipmaker will kick off its ADR book building process ​on July 6 and determine the final offer price on July 9 ahead of its ​Nasdaq debut the following day.

• ‌SK Hynix declined a Reuters request for comment.

• Citigroup, one of the banks leading ⁠the share sale, declined to comment on Saturday. The other banks leading the transactions Goldman Sachs , JPMorgan (NYSE: JPM) and Bank of ⁠America (NYSE: BAC) did not immediately respond to a Reuters request for comment outside ​regular business hours.

• Last month, the company said it plans to raise up to $29.4 billion through a U.S. stock market listing ‌in what would be among the biggest listings globally, as the Nvidia supplier seeks ‌to capitalize on strong investor appetite for AI stocks.

(Reporting ⁠by Devika Nair in ‌Bengaluru, Additional reporting by ​Hyunjoo Jin in Seoul and Yantoultra Ngui in Singapore; Editing by Raju Gopalakrishnan and Sharon ‌Singleton)

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