00:00Yeah. So this is a company, to your point, nominally at $28 billion would be the third
00:04largest IPO ever on any exchange. So behind SpaceX, behind Saudi Aramco, which is pretty
00:11mind boggling to be completely honest. The thing to keep in mind is, so this is an ADR
00:17IPO. So basically they're selling shares for the first time here in the US. They will maintain a
00:22home listing on the other side of the world in South Korea. Each ADR represents one 10th of
00:26one common share. Why does that all matter? A, as you mentioned, a $28 billion offering is very large.
00:33B, this is a company worth more than a trillion dollars. And C, this opens up everyone on Wall
00:40Street, everyone in the US to now actually trade SK Hynix on New York hours, on US hours, and be
00:47able
00:47to cater to not only retail investors, but institutional investors. We already saw Bailey
00:51Gifford, Coatoo, and situational awareness partners indicating they want to buy as much as $7 billion
00:56of this deal. So big numbers, but it's also a right time for the company.
01:02Timing. I've heard people talk about maybe this feels a little top of the market kind of thing.
01:09Are you hearing that out in the marketplace?
01:10Yeah. When we talk to people, the main question is, can we structurally say this time is different?
01:17And why does that matter for semiconductors? Semiconductors are the most cyclical business
01:21on Wall Street. So this is an industry that booms and busts as kind of the PC and smartphone eras
01:26evolve. And as sales kind of mature from there, the big question is, will we continue to see demand
01:32for building out data centers? Will we continue to see that here on Earth and potentially as SpaceX
01:37wants to do in space? And the big question from there goes, these are companies that want to spend
01:42hundreds of billion dollars to build out manufacturing capacity. Right now, there's a bottleneck
01:47to get compute and get access to these chips. Well, what happens if it's not that easy? And that's
01:52the big risk.
01:54So just from a U.S. listing perspective, is this going to go in various indices? Is SK Hynix in
02:04the
02:04various indexes around the world?
02:06It's in some. When you just kind of look using the WGT function, which will pull up which indexes
02:13the company is in. Obviously, again, it's one of the bigger, bigger companies in the world. So it's
02:18in obviously a big driver behind the KOSPI, the Korean exchange. It's also in a number of those
02:22emerging market ETF, emerging market indexes. The big thing to keep an eye on and the big thing that
02:26does matter is it's not eligible for fast track NASDAQ 100 inclusion. But in the long run, it will
02:33likely be included in the NASDAQ and 100 and everything that that brings. Obviously, we talked about
02:38that with SpaceX. That is a fundamental shift for a company, again, that has been very difficult to
02:44trade for U.S. investors. And then the question from there goes, OK, do we get to see double and
02:49triple
02:50levered ETFs and kind of what happens with that entire explosion from there?
02:55So will this open up new buyers, I guess, potential new owners for this stock?
03:01Yeah. When we've spoke with a number of institutional investors, whether they couldn't
03:06trade companies that are listed in an emerging market, whether they just don't want the headache
03:10of worrying about foreign exchange and hedging some of those risks, that those have been top
03:15of mind. We do know a few investors that we spoke to for our story that went out Sunday morning.
03:20There also are investors who just aren't comfortable with an ADR. They want to own companies
03:25that are domiciled here. They want to own companies that their primary listing is in the U.S.
03:29as opposed to this. It'll be interesting to see what kind of premium it trades at. This is kind
03:33of ripping off the playbook that we saw with Taiwan Semi. But again, that was a company that
03:37raised a few hundred million, not closer to 30 billion. What's the timing of this deal?
03:42It'll price and it'll trade on Friday. We expect pricing to happen sometime Thursday morning here
03:49so that it would open up, kind of making sure that people are able to trade accordingly in South
03:54Korea there Friday morning. It's a truncated process. It's a quicker process. But even talking
03:58to the bankers on the deal, if you want to invest in SK Hynix, you probably know who the company
04:03is and you're not selling a new entire pitch. The one thing that we've been pointing out
04:07is their main roadshow at 1.30 p.m. New York time will be the only real interaction with
04:12management on a webcast for potential institutions. So they're just doing a webcast?
04:17Kind of a webcast, very quick process. Again, it's tied to it. I'm overcomplicated.
04:21Just another great day to be an IPO banker, right?
04:26Yeah, they're making, I think it was 50 bps on this deal. So we had a few bankers who said,
04:31you know, this isn't easy. But when you compare to being at the beck and call of Elon Musk,
04:36night and day between the SpaceX IPO.
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