Report: SK Hynix abandons Solidigm US IPO plan
Solidigm originated from SK Hynix’s acquisition of Intel’s NAND flash and SSD business. Lee Chan-jin, Chairman of Korea’s Financial Supervisory Service, stated that Solidigm’s listing in the U.S. could be subject to Korea’s duplicate listing regulations. Previous reports indicated that Solidigm is considering going public on Nasdaq as early as 2027, with a potential valuation of up to 150 billions of dollars.
According to the Korea Economic Daily on Friday, citing unnamed industry insiders, SK Hynix has decided to no longer pursue an initial public offering (IPO) for its subsidiary Solidigm in the United States.
This decision comes as Korean regulators intensify their scrutiny of duplicate listings by parent and subsidiary companies.
On the 19th of this month, Financial Supervisory Service Governor Lee Chan-jin stated that Solidigm's planned US listing could involve Korea's duplicate listing regulatory rules. Financial Services Commission Chairman Lee Bok-hyun also said on the 22nd that Solidigm is subject to relevant guidelines, and SK Hynix and its upstream parent company are obligated to protect shareholder rights.
Regulatory Pressure and Intensifying Shareholder Rights Controversy
Solidigm originated from SK Hynix’s acquisition of Intel’s NAND flash and solid-state drive business. SK Hynix completed integration of the business in 2021. Solidigm is currently focusing on enterprise-grade solid-state drives (eSSD) for artificial intelligence data centers.
Previously, according to media reports, Solidigm was considering a Nasdaq listing, possibly as early as 2027, with a maximum valuation of up to 150 billion USD. The IPO could help finance expansion of production capacity and R&D investments, while also easing the burden of direct investment borne by SK Hynix.
However, the potential listing has also triggered concerns in the Korean market about the dilution of shareholder rights. If Solidigm issues new shares to external investors, SK Hynix’s stake in the company may decrease, and they will need to share a portion of future profits with external shareholders.
On October 1, SK Hynix stated that it had not yet made any decisions regarding Solidigm’s capital operations. The company is evaluating options such as internal funding and external financing, emphasizing that any decision will prioritize long-term corporate value and shareholder interests. The news of abandoning the US IPO suggests a possible adjustment to their financing plans, though the company has not yet publicly confirmed the decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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