Episode summary
SK Hynix ADRs Surge After Record $26.5 Billion US Offering | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Anthony Hughes, George Ferguson, Beth Kowitt, Kevin Near
Summary
SK Hynix’s U.S. debut was the headline market story, with its ADRs opening about 14% above the $149 offering price after the company raised $26.5 billion on Nasdaq. The guest said the move reflected strong demand for a very large deal, a deliberate effort to secure a lower cost of capital, and a premium over the stock’s Korean trading price. He also noted that management has hinted at future ADR sales and more debt, as the company faces heavy capital expenditure needs while balancing shareholder returns against production growth.
On airlines, the guest said Delta’s second-quarter results showed continued strength in premium, corporate and international travel. Revenue rose 14% year over year while capacity increased just 1%, and Delta reaffirmed full-year profit guidance after earning an adjusted $1.56 a share. He argued that the industry is increasingly optimizing cabins for higher-paying travelers, even as lower-end demand remains softer and discount carriers have already been pressured out.
The final segment was more upbeat on theaters. The guest said domestic box office is heading toward $10 billion this year because there is simply more content, more time in theaters, and more willingness from studios to keep films in the theatrical window. He said younger audiences have returned strongly, while industry visibility looks solid through 2027, though studio consolidation could pressure output later on.
Key takeaways
- The guest said SK Hynix priced its U.S. ADRs at a premium to Korea to lower financing costs and potentially support future capital raises in the U.S.
- He said Delta’s 14% revenue growth and 1% capacity growth showed premium demand remains the strongest part of the airline story.
- The guest said airlines are shifting toward premium cabins and away from basic economy, even as lower-end travelers remain pressured by inflation.
- He said domestic box office is recovering because more films are staying in theaters longer and audiences are being retrained to watch in cinemas.
- The guest said Hollywood has better visibility through 2027, but studio consolidation could reduce output and raise downside risk after that.
Notable quotes
“this was a a um offering which was designed to fund the um capital capital expenditure of the company”
“Delta showed some resilience in that in the revenue lines”
“we have much much better visibility not only into the second half, but also into 2027”
How the episode opens
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Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcast or watch us live on YouTube. We have SKH High ADRs opening for trade.
They opened 14% above the offer price. They opened at $170. Uh the offering was at $149.
The company raised $26.5 billion in selling American depository receipts on the NASDAQ. Uh let's bring in Anthony Hughes. He is our senior uh equity capital markets reporter here at Bloomberg News.
And Anthony, you've been monitoring this. Um this was a very overs subscribed offering. There was a lot of demand for it.
And uh this opening indicates uh the demand has not stopped.
Yes, for the size of this offering um this gain that you can see here um you know sort of around 15% uh is what you'd expect um for perhaps a deal like this where it's pretty large. You wouldn't expect maybe to go up um you know like 50 100% or something like that. But you know really what this confirms is that uh SKH Highex has been able to achieve a premium um to its you know the price at which the stock trades in in Korea and that's was part of the uh part of this exercise here.
It was a this was a a um offering which was designed to fund the um capital capital expenditure of the company. But it was also uh trying to do that in a way which was most efficient for the company and and enabling the company to get a cost of capital that was more uh the best the lowest they could and um you know uh basically as good as microns getting in the US.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- sk hynix adrs
- us equity offering
- delta earnings guidance
- big tech compensation divide
- box office theater windows
Companies and tickers mentioned
- DAL
- META
- AMC
- CNK
- SK Hynix
- Delta Air Lines
- Meta
- AMC Entertainment Holdings
- Cinemark Holdings
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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