Follow-up: SK Hynix Halts Solidigm U.S. IPO Review; Shares Reverse to 4.4% Gain
SEOUL — South Korean chip giant SK Hynix said on October 23 that it had put on hold its review of a pre-IPO fundraising round and an initial public offering for its U.S. unit Solidigm, citing increased market volatility and after South Korean authorities raised concerns that the deal could undermine shareholder interests. SK Hynix shares reversed early losses to close 4.4% higher, outperforming a flat broader market.
Solidigm was established when SK Hynix acquired Intel's NAND flash and solid-state drive business in 2021, and SK Hynix holds 100% of the unit through its U.S. holding company. A U.S. listing for Solidigm had been under consideration to help fund a new U.S. factory and meet surging demand for chips in SI data centers; it could also have funded share cancellations and buybacks. People familiar with the now-suspended IPO plans had said the share sale could have raised $15 billion and valued the unit at $150 billion. "This decision does not reflect any change in Solidigm's growth prospects or investment needs," SK Hynix said in a statement, adding that it plans to continue exploring ways to fund Solidigm's expansion, including reviewing the timing, scale and financing of future investments.
SK Hynix became dual-listed with a debut on Nasdaq in July. Before the halt, South Korea's
Financial Supervisory Service had said a Solidigm U.S. listing could run into the country's dual-listing restrictions; IPO preparations were first revealed on August 5, 79 days earlier. SK Hynix shares fell as much as about 3% to 4.3% early in the October 23 session before reversing to a 4.4% gain, as worries that a Solidigm IPO could dilute existing shareholders abated. Reuters also noted it was not immediately clear how the Trump administration, which has pressed foreign chipmakers to build new U.S. facilities, would receive the decision; SK Hynix had sought to use the prospect of a U.S. factory as a bargaining chip for Washington's approval to export U.S. chipmaking equipment to China.
(GSM, from Reuters and Aju Press)
Source: GSM · USA (original Chinese edition)
Photo: 图：SK海力士DDR5内存模组展示，资料图。 / An SK hynix DDR5 memory module on display (file photo).
