00:00And that went about as well as it possibly could have done, right? Yes, it did. Talk about the experience
00:06of it. You know, it's a record in terms of your first time U.S. share sale for a foreign
00:12entity. We keep saying that. But the mechanics of it, are feet difficult to pull off? Well, I think a
00:18lot of the mechanics will be the underwriters. So let's give them all the credit in the world. J.P.
00:22Morgan running this transaction primarily as a stabilization agent. Not only stabilizing this trade, but they were the orchestrator. Let's
00:28call it that. You know, our job is to
00:29provide the capacity, the technology. You saw behind you the human intelligence and making sure that everyone knows what's happening
00:37with full transparency. So the, you know, all the book runners can communicate with their customers, which is, you know,
00:43the buy side investors who are making the bet on S.D. Heights. Celebrations continuing behind us. It's going to
00:48continue for a while, I think. No, it's good. It's interesting. Like this isn't very sophisticated, but it's a Friday.
00:54You know, does that play into it at all? What are we seeing in the activity around that? I think
00:58most deals will
00:59price and trade on a Wednesday or a Thursday. Friday is not typical, especially during the summer. But I think
01:05you get to a deal of this size that has captivated the market.
01:08It had tremendous institutional interest. So I think it could have, you know, any day of the week would have
01:13been fine for S.K. Hynix. Nelson, one of the things I started the conversation with
01:17Chairman Chae on was the idea that on an ongoing basis, ADRs are an interesting mechanism for them in the
01:24capital markets. So essentially what Chairman Chae said was, well, we'll look at some stability and give it some time.
01:30But yes, how would that work, the idea that you come back to the market on whatever cadence they choose?
01:37Sure. Well, companies typically will come back to the market.
01:40They'll be evaluating where they get the best valuation for those shares, whether it's in their local market or an
01:45ADR market. But the typical technology IPO will come back to the market
01:49several times to raise capital. This is a very seasoned public company. So they'll go through all those mechanics, say,
01:54where is the best place that you need to raise capital?
01:56It could be the debt markets. It could be the equity markets. And hopefully it's ADRs in the U.S.
02:00Do we need to make anything of where they price the ADR? You know, this morning on the Bloomberg, it
02:08was about this idea, OK, this is a 3% premium over where the common
02:12shares in Seoul closed. The ADRs represent a tenth of one common share. You know, the back story is how
02:20much money do you or do you not leave on the table?
02:23That's always the question, right, for companies. And typically, if it's an IPO, let's say it's not an ADR, we'll
02:28benchmark off their current public
02:30comps. This had a combination. OK, so what is the equity trading in Korea? Also, you have a U.S.,
02:36large U.S.
02:37comp in Micron. So how do you find that balance? And that's where, again, I think JP Morgan did a
02:42very nice job here getting the price to a
02:44point where we've seen some nice upward price action. It's being very it's very stable at the moment. And I
02:49think it did just a great job.
02:51Chairman Che made an interesting point about maybe the rationale or so for doing this, which was not just the
02:57capital, the proceeds
02:58raised, but introducing SK to the American people. Absolutely. From it. That was in the context of the talent perspective,
03:06right?
03:06A pipeline of talented people that might work for the company from the Nasdaq side and your involvement through the
03:12process.
03:13How much do you take that into account? Quite a bit. And most companies will take that into account. So
03:18you look at being on a
03:19public stage. The U.S., the global U.S. capital markets public is about $150 trillion in market cap. The
03:26U.S. is 70 percent of that.
03:28I think being a public company in the U.S. does show as you want to attract talent. They're making
03:32significant investments in the U.S.
03:34Having a U.S. currency to do that is a big deal. And even a traditional IPO puts the brand
03:40component as one of the major reasons why they think about
03:44tapping the public markets. There is another big memory name and chip name in South Korea. It's called Samsung. How
03:51much have you been talking to
03:52them about doing something similar? We never talk about, you know, names on camera or in public until it becomes
03:59a point where it is
04:00public. But I think if you look at having moments where you have a successful offering, it does open up
04:06the eyes of others to say, does this make sense
04:08for us? So at the very least, companies who have an internationalist will say, does how does this correlate to
04:15us?
04:16Do we have an investor pool to tap into? Do we want to think about the brand aspects and then
04:20understanding do they want to do
04:21another offering? Is there more broadly a pipeline, do you think, of technology companies outside of the United States that
04:29that are looking at
04:30this and thinking this is, you know, getting that fair valuation? Yeah. Yeah, so I was actually just in Europe
04:36this week and meeting with a lot of
04:37companies. And if you look at this year of the top 10 raises, four have been international. Now, three of
04:43them, you know, this is one of
04:44them with SK HONIX, but you had BENDING SPOONS GO PUBLIC, PAYPAY, INEO, very large deals that felt the U
04:50.S.
04:51CAPITAL MARKETS GAVE THEM THE BEST VALUATION. I THINK WE'RE HAVING MORE OF THOSE CONVERSATIONS THAN ADR-TYPE LISTINGS.
04:57BUT BOTH ARE HAVE A LOT OF MOMENTUM BEHIND THEM. IS THERE A DIFFERENT SPEEDS IN THOSE MARKETS, ASIAN
05:01TECHNOLOGY VERSUS EUROPEAN TECHNOLOGY THAT YOU'RE SEEING? NO, I WOULDN'T SAY THAT.
05:05I THINK MOST OF THE EUROPEAN ONES ARE MORE OF THE START-UP COMPANIES THAT HAVE NOT LISTED ANYWHERE YET.
05:12SO THEY REALLY LOOK AT THE U.S. AS A PRIMARY FIRST LISTING, MAYBE THE ONLY LISTING.
05:15I THINK WE DO LOOK AT A LOT OF COMPANIES IN ASIA MIGHT HAVE A LOCAL LISTING AND THEY THINK
05:19ABOUT ADRs.
05:19I'VE GOT ONE VERY QUICK NICHE QUESTION FOR YOU THE TEAM SENT OVER, WHICH IS HOW IS NASDAQ THINKING
05:24ABOUT THE
05:25PROSPECT OF MORE LEVERAGE SINGLE NAME PRODUCTS, ETF'S? IT'S SOMETHING THAT COMES UP A LOT AND HAS THIS WEEK.
05:32LEVERAGE PRODUCTS UNDER A SINGLE NAME ETF FOR TECH COMPANIES IN PARTICULAR?
05:36YEAH, WE LOOK AT WHERE THE MARKET DEMAND IS FOR THINGS LIKE THAT.
05:38THERE'S MARKET DEMAND AND IT'S A PRODUCT THAT WE THINK IS GOING TO BE APPROPRIATE FOR THE MARKET, REGULATED.
05:43NASDAQ IS A PARTICIPANT IN INNOVATION. WE LOOK AT HOW WE ADDRESS MARKET NEEDS.
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