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SK Hynix shares jump after approving $29 billion buyback and cancellation
The plan calls for buying back and permanently canceling up to 24 million treasury shares between Aug. 20 and Nov. 19 while committing to return more than 50% of 2025 to 2027 free cash flow to shareholders.
SK Hynix’s US-listed ADR rose about 6% in premarket trading on Aug. 19 after the memory chipmaker announced a buyback and cancellation program totaling 40 trillion won, or about $29 billion, according to LiveMint Markets. The company said it will allocate more than 50% of free cash flow generated between 2025 and 2027 to shareholder returns, expanding its prior framework that limited payouts to within 50%.
Under the plan, SK Hynix will buy back and cancel up to 24 million treasury shares between Aug. 20 and Nov. 19, which would reduce its total outstanding share count. The company said the move is intended to increase earnings per share and boost existing shareholders’ proportional ownership without requiring additional investment from them.
LiveMint Markets also noted that investor pressure has been building for larger capital returns from memory chipmakers after strong AI-linked profits. The company said it would distribute the capital through a combination of share buybacks, share cancellations, and cash dividends.
The buyback comes after SK Hynix raised about $26.5 billion just a month earlier through a US listing amid heightened AI rally excitement, LiveMint Markets reported. The ADR had fallen 9.2% on Tuesday during a broader Wall Street technology sell-off, and the primary South Korean listing was down 9.75% in Seoul trading on Aug. 19.