00:00But I'm going to start with you. This is an issue of math, right? Explain the ADR process,
00:05where we think they're indicating right now they will price, and why this would be the biggest
00:10first-time U.S. share sale by a foreign entity. Yeah, so at $149 per ADS, that equates to call
00:17it a 3% premium from where shares closed at in South Korea on Thursday night for them.
00:23The math works out because every ADR equates to one-tenth of one share. So there's your math
00:28problem there for you, Ed. One thing to keep in mind, we did report in break that this was a
00:32deal
00:32that was over seven times oversubscribed. Small number at the headline, but when you look under
00:37the surface, nominally, that's north of $160 billion in demand. Similar to what we saw for
00:42Sara Bross, again, would be a record-setting and will be a record-setting listing for a foreign
00:47issuer here in the U.S., so outpacing Alibaba but falling short of Saudi Aramco's domestic listing.
00:53The big question going forward now is, do they stick to that price, and how does the stock trade
00:57relative to those South Korean shares? As you know, they normally will trade in terms of ADRs
01:03at a premium, so pricing it at 3%, do we see that get closer to double digits? Certainly
01:07something top of mind. SK's going to raise between $26 and $28 billion for a reason, Bloomberg's
01:12Ian King. They need to boost capacity. But the history here is really important. SK Group bought
01:18Hynix in 2012, and at the time, in the memory landscape, maybe they weren't taken seriously.
01:23Bring us forward to present day and explain where SK sits relative to Micron and, of course,
01:29its domestic rival Samsung. Yeah, I mean, this is really a rags-to-riches story. This is a company
01:35that, you know, was in trouble and was quite likely to – came very close to being bought by its
01:41competitor, Micron, and Samsung refused to buy it as well. I mean, it's come an incredibly long way.
01:48And if you look at it from the investor perspective, we've got, well, revenue tripling to more than
01:54$200 billion this year at an 80% gross margin. So, you know, it's come so far and done so
02:01well.
02:02Ian, every memory chip also starts with a silicon wafer. And, like, big news story this morning was
02:07Micron boosting its U.S. investment to $250 billion from $200 billion, so $50 billion more. But it's a
02:16bigger story about re-unsuring capacity. Explain that to us.
02:20Yeah, I mean, the big story really – and this is what ties SK to Samsung to Micron is –
02:27how much
02:28capacity is going to get put in place, but more importantly, how quickly. There's no doubt that
02:32demand is very, very strong right now. Nobody is saying that over the next two years or so that
02:38we're going to be in anything like balance or oversupply. But, you know, this is an industry
02:45that's never got it right over the long term. They've never had a market like AI before, but
02:51they've never been able to balance those things. So, really, what everybody is focusing on is how
02:55much gets spent when. And if we see a massive flood of that $250 billion getting deployed in
03:00the U.S. very quickly, then that is something that investors will pay close attention to.
03:05Very specifically, we're talking about high bandwidth memory. And later in the show,
03:08we're going to get the analysis from beyond that. Very quickly, Bailey, what happens next?
03:12The mechanics of this USADR listing. So, we'll start trading tomorrow at some point,
03:16like a typical IPO. So, it won't start right at 9.30. We'll see a bookmaking process.
03:20The interesting thing to keep an eye on, it's going to trade under a different ticker on Friday
03:24than relative to when it is formally listed on Monday. Again, keeping a close eye on how it
03:29trades out with that premium relative to those Korean shares.
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