SK Hynix ADR has a premium of nearly 50% to South Korean common stock

On July 15, just three days after SK Hynix ADR went public, the premium over its South Korean listed stock soared to nearly 50%. Hynix ADR surged as much as 23% on Tuesday, a day after a record sell-off in South Korea's stock market led to a sharp drop of more than 9% in U.S. stock trading. Currently, its ADR premium rate has risen to about 46%, well above the 3% spread set at the time of its launch last week. According to a U.S. Securities and Exchange Commission filing, each SK Hynix ADR is equivalent to one-tenth of common stock. Tuesday's rally came as SK Hynix ADR options began trading on the U.S. options exchange, making it easier for the world's largest derivatives market traders to trade the company.