If SK Hynix's ADR Additional Offering is Included in MSCI, It May Attract Around 1.45 Trillion Korean Won of Passive Fund Inflow

August 5th - According to South Korean Edaily, South Korean investment securities analyst Yeom Dong-chan stated that if MSCI includes the secondary offering implemented by SK Hynix for its ADR listing in the August quarterly review, its weight in the MSCI Emerging Markets Index may increase by 0.17 percentage points.

The report estimated that the index funds tracking the MSCI Emerging Markets Index have a total size of around $593 billion, and the weight adjustment could bring about ₩14.5 trillion in passive inflow funds. The analyst noted that this scale, relative to SK Hynix's market capitalization and average daily trading volume, is not significant, but it could have a positive impact on market supply and demand.

In order to facilitate the ADR listing, SK Hynix conducted a secondary offering through third-party placement, increasing its total shares from 713 million to 730 million, a growth of approximately 2.5%. The new shares became effective on July 29th.

However, it is still uncertain whether MSCI will immediately reflect the share capital changes in this August quarterly review, and it may also be postponed to the regular review in November. The review results will be announced at 6 a.m. on August 13th, South Korea time.