SK hynix halts review of Solidigm US IPO amid market volatility
The chipmaker has paused its review of a fundraising round and subsequent listing for its US subsidiary, while saying it remains committed to Solidigm’s growth.
SK hynix said on Friday, October 23, that it had halted its review of a fundraising round and subsequent US stock market listing for its subsidiary Solidigm. The South Korean chipmaker cited capital-market conditions, putting a potential source of funding for the California-based memory business on hold.
The company said it had been reviewing a pre-IPO fundraising round followed by an initial public offering in the United States. Reuters reported that SK hynix pointed to financial-market volatility, share-price trends and a broader correction in semiconductor stocks when explaining its decision.
Why SK hynix considered a Solidigm listing
An IPO was among the ways SK hynix had considered raising external capital for new US production facilities, Yonhap reported. The investment would help the company address growing demand for memory linked to artificial intelligence. SK hynix had also weighed direct investment as it considered how to fund Solidigm’s expansion.
Solidigm specializes in NAND flash memory and solid-state drives. It was established in 2021 after SK hynix acquired Intel’s NAND flash memory and solid-state drive business, according to Yonhap reporting republished by The Korea Herald. Those products give the subsidiary a role in SK hynix’s wider memory business.
Market pressure and shareholder concerns
Reuters reported that SK hynix shares had fallen more than 30% since the potential Solidigm IPO was reported in late September, compared with a 20% decline in South Korea’s benchmark KOSPI index over the same period. The share-price moves formed part of the market backdrop to the company’s decision.
The proposed separate listing had also drawn opposition from shareholders and scrutiny from South Korean financial regulators. Yonhap reported concerns that a so-called duplicate listing could weaken the value of existing shareholders’ stakes. SK hynix said tighter government restrictions on such listings were not the direct reason it stopped the review.
SK hynix said its commitment to investing in Solidigm’s growth had not changed and that it would continue to explore alternatives to enhance shareholder value. It did not say when it might resume the IPO review or announce another financing plan.
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Sources and context
- SK Hynix says Solidigm suspends review of US IPO, citing market volatilityReuters, republished by Channel NewsAsia
- (LEAD) SK hynix halts review of Solidigm U.S. IPOYonhap News Agency
- SK hynix halts review of Solidigm U.S. IPOYonhap News Agency
- SK hynix halts review of Solidigm US IPOYonhap News Agency, republished by The Korea Herald
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.