SK hynix halts review of US stock market listing of Solidigm
SK Hynix headquarters at Icheon, Gyeonggi Province, May 26 / Yonhap
Solidigm, SK hynix’s NAND flash memory subsidiary, has decided to halt its review of potential pre-IPO fundraising and initial public offering (IPO) options, citing volatile capital markets and recent trends in semiconductor stock prices, SK hynix said Friday.
"While SK hynix and Solidigm continue to deliver solid business performance, financial market volatility has increased, contributing to a broader correction in semiconductor stocks," SK hynix said in a press statement.
"After comprehensively assessing these business conditions, Solidigm has decided to discontinue its review of potential pre-IPO and IPO options."
Reports circulated that Solidigm, SK hynix’s NAND flash memory subsidiary, was considering a U.S. IPO as early as next year that could value the company at up to $150 billion, with the listing seen as a way to secure funding for U.S. production facilities and technology development amid growing demand for enterprise SSDs (eSSDs) for AI data centers.
However, the potential listing had raised concerns over its impact on SK hynix's shareholder value, as well as regulatory scrutiny over the possibility of a subsidiary listing overseas while its parent company remains listed in Korea.
Amid mounting controversy over Solidigm’s potential dual listing, financial authorities warned that the listing would be subject to regulatory scrutiny.
However, SK hynix said the decision does not reflect any change in the company’s growth prospects or investment needs.
“Rather, it reflects a reassessment of whether an IPO would be the most beneficial option for SK hynix and its existing shareholders under current market conditions," it added.