SK Hynix Halts Review of Solidigm Pre-IPO and US Listing
SK Hynix said it will keep investing to expand production capacity and will later re-examine the timing, scale and funding method for investment.
SK Hynix announced on October 23 in a regulatory filing that it is halting its review of a pre-IPO investment round and a US stock market listing for its subsidiary Solidigm, according to techm.kr.
The company said the decision was made after considering capital market conditions among other factors. It added that it will continue investing to expand production capacity and will later re-examine the timing, scale and funding method for investment.
Analyst Han Ji-young of Kiwoom Securities said the filing to halt the Solidigm IPO review is likely to contribute to an improvement in semiconductor investment sentiment.
Regulatory context
On October 19, the governor of the Financial Supervisory Service told a National Assembly audit that the Financial Services Commission and the FSS judged the Solidigm listing to conflict with duplicate-listing rules. The day before the article, the FSC chairman said Solidigm's US listing falls under duplicate-listing guidelines and that SK Square and SK Hynix must fulfill five obligations as parent companies based on shareholder fiduciary duty.
In 2021, SK Hynix acquired Intel's NAND flash and SSD business and launched Solidigm as a US semiconductor company.
Quick answers
What did SK Hynix announce about Solidigm?
SK Hynix said in a regulatory filing on October 23 that it is halting its review of a pre-IPO investment round and a US stock market listing for its subsidiary Solidigm.
Will SK Hynix still invest in Solidigm?
SK Hynix stated it will continue investing to expand production capacity and will later re-examine the timing, scale and funding method for investment.
Why did regulators question the Solidigm listing?
The FSS governor said on October 19 that the Financial Services Commission and the FSS judged the listing to conflict with duplicate-listing rules.