A global analysis firm has indicated that Solidigm's upcoming initial public offering (IPO) on the U.S. stock market will positively impact the long-term performance of its parent company, SK Hynix.
According to industry sources and foreign media on October 18, Bloomberg Intelligence released a report on October 15, stating that Solidigm's listing could strengthen SK Hynix's long-term growth foundation.
The report noted, "If Solidigm accelerates profit growth by expanding research and development (R&D) and production capabilities with the funds raised from the IPO, the actual growth effect will outweigh concerns about equity dilution."
It assessed that even if Solidigm sells a portion of its shares to external investors, the impact on SK Hynix's performance would be minimal. Assuming Solidigm accounts for about 10% of SK Hynix's total net profit, a 10% external shareholding would result in only a 1% decrease in SK Hynix's earnings per share (EPS). Even if the external shareholding increases to 15%, the decline would remain at approximately 1.5%.
Meanwhile, preparations for the U.S. listing are becoming more concrete. Solidigm recently hired Andres Castrillon, formerly of Qualcomm, as its vice president for government affairs in the U.S. It has also appointed Ballard Partners, a prominent consulting firm, to assist with semiconductor policy and regulatory responses, as well as local business expansion in the U.S.
Goldman Sachs and Morgan Stanley have been selected as lead underwriters. Market estimates suggest that Solidigm's valuation could reach up to $150 billion (approximately 200 trillion won), with the IPO size potentially reaching $15 billion (about 20 trillion won).
* This article has been translated by AI.
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