SK Hynix announced the suspension of its U.S. subsidiary Solidigm's initial public offering (IPO) review, leading to a midday rebound in its stock price. The decision to halt the IPO review amid concerns over dual listing has drawn attention to its potential impact on semiconductor investment sentiment.
As of 10:43 a.m. on October 23, SK Hynix shares were trading at 1,233,000 won, up 10,000 won (0.82%) from the previous trading day. The opening price in the regular market was 1,200,000 won, with shares peaking at 1,235,000 won during the session.
Before the market opened, SK Hynix disclosed that it would suspend the review of Solidigm's IPO. According to the Financial Supervisory Service's electronic disclosure system, the company stated, "Our overseas subsidiary Solidigm has been exploring various funding options to expand production capacity and enhance competitiveness, but has decided to halt the review of pre-IPO and IPO considering the overall capital market conditions." This announcement comes 79 days after the IPO preparations were first revealed on August 5.
Han Ji-young, a researcher at Kiwoom Securities, commented, "The recent announcement regarding the suspension of Solidigm's IPO review by SK Hynix is likely to contribute positively to investment sentiment in the semiconductor sector."
Solidigm was established when SK Hynix acquired Intel's NAND flash and solid-state drive (SSD) business in 2021. SK Hynix holds a 100% stake in Solidigm through its U.S. holding company, AI Company.
The potential IPO of Solidigm had been discussed as a means to secure investment for building production facilities and developing technology amid the growing market driven by artificial intelligence (AI). However, the process faced increased pressure due to shareholder opposition, stock price declines, and concerns over dual listing.
Previously, as the dual listing controversy surrounding Solidigm continued, Lee Chan-jin, the head of the Financial Supervisory Service, and Lee Ok-won, the chairman of the Financial Services Commission, emphasized the regulatory implications, increasing scrutiny on the matter.
* This article has been translated by AI.
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