SK Hynix scraps Solidigm US IPO after shareholder opposition, ‘duplicate listing’ concerns
This follows regulatory concerns that the offering could potentially dilute existing shareholders
SK Hynix has abandoned plans for a US IPO of its Solidigm unit, citing strong shareholder opposition and regulatory concerns. The South Korean chipmaker also halted a pre-IPO investment process pursued alongside the listing. Financial market volatility and recent share price trends were among the reasons cited by the world's second-largest memory maker.
Despite strong business performance, SK Hynix said a broader correction in semiconductor stocks prompted the reconsideration of the listing. Solidigm, based in California, specialises in Nand flash memory and solid-state drives. The decision was influenced by regulatory opposition in South Korea, as the Financial Supervisory Service viewed the planned offering as a "duplicate listing" that could dilute existing shareholders.
The move comes amid investor concerns over the artificial intelligence trade and heightened market volatility.
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Also reported by 5 other outlets
- SK hynix Halts Solidigm U.S. IPO Review, Responding to Shareholder Concerns businesskorea.co.kr
- (LEAD) 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
