(LEAD) SK hynix halts review of Solidigm U.S. IPO
SEOUL, Oct. 23 (Yonhap) -- SK hynix Inc. said Friday it has decided to suspend p...
SK hynix has decided to pause its examination of Solidigm's planned U.S. IPO, citing unfavorable market conditions. Reports suggest Solidigm was aiming for an IPO next year, potentially valuing the subsidiary at up to US$150 billion. SK hynix maintains its commitment to investing in Solidigm's growth and will explore other avenues to boost shareholder value.
The decision follows strong shareholder opposition and regulatory concerns about a possible "duplicate listing," which could dilute existing shareholders' stakes. South Korean financial regulators view Solidigm as subject to duplicate listing restrictions. SK hynix clarified that this decision is based on shareholder value, considering current market conditions and increased volatility, rather than government restrictions.
The semiconductor maker was evaluating an IPO to raise funds for U.S. production facilities and meet the growing demand in the AI era, which could have enhanced Solidigm's growth potential beyond its current corporate valuation.
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- SK Hynix scraps Solidigm US IPO after shareholder opposition, ‘duplicate listing’ concerns businesstimes.com.sg
- SK hynix Halts Solidigm U.S. IPO Review, Responding to Shareholder Concerns businesskorea.co.kr
- SK hynix halts review of Solidigm U.S. IPO en.yna.co.kr
- SK hynix halts review of US stock market listing of Solidigm koreatimes.co.kr
- SK Hynix drops US IPO plan for Solidigm, newspaper reports channelnewsasia.com
- SK Hynix drops US IPO plan for Solidigm, newspaper reports investing.com
