Solidigm Nasdaq Plan Faces Shareholder, Regulator Pushback

SK Hynix's sub-subsidiary Solidigm's plan to list on the Nasdaq has been met with opposition from shareholders and regulators in the United States. Financial Supervisory Service Governor Lee Chan-jin has sided with the shareholders, stating that the listing violates dual listing rules. The Korea Corporate Governance Forum has also criticized the listing, claiming it is a conflict of interest that shifts the cost of dilution onto SK Hynix shareholders.

Solidigm, established by SK Hynix after acquiring Intel's NAND flash and SSD business in 2021, is a sub-subsidiary under the AI Company, a US investment corporation. The corporate value of Solidigm is estimated to be around $150 billion. Shareholders are concerned that listing Solidigm will decrease their share of profits, as SK Hynix's stake ratio will decrease proportionately if external investors take a stake in Solidigm.

The listing also raises concerns about double-counting the business value in the stock prices of both the parent company and the sub-subsidiary. The Financial Supervisory Service has implemented strict rules for dual listing, requiring the parent company to fulfill five obligations, including a shareholder impact assessment and preparation of shareholder protection measures.

However, Solidigm's listing on the Nasdaq does not undergo a preliminary review, making it difficult for authorities to block the listing. The Securities Registration Statement, which requires submission to the Financial Supervisory Service if domestic investors can acquire the shares, poses an additional obstacle for Solidigm as a US corporation.