[Anchor]
SK Hynix has decided to halt its push to list its grand-subsidiary Solidigm on the U.S. stock market. With the resolution of "double-listing concerns" that can arise when a parent company and its grand-subsidiary are listed separately within the same group, SK Hynix's stock price jumped by more than 4%.
Reporter Lee Tae-gwon has the details.
[Reporter]
SK Hynix publicly announced that it is suspending the review of Solidigm's listing on the U.S. Nasdaq.
This comes 79 days after the fact that the company was considering an IPO became known on August 5.
SK Hynix stated the reason for the suspension, explaining, "Considering recent capital market conditions and stock price trends, we determined that it is necessary to reevaluate whether going public is the most advantageous choice for SK Hynix and its existing shareholders."
Solidigm, which was launched after SK Hynix acquired the NAND business of U.S.-based Intel in 2021, had been reviewing a U.S. listing to secure funding for new factory investments and other financial needs.
However, it appears the company concluded that even if it went public amid growing concerns over AI investments and fluctuating semiconductor stock prices, it would be difficult to receive a proper valuation.
Controversy over double listing also played a role.
Currently, Solidigm is situated in a five-tier governance structure stemming from the top holding company.
Solidigm's value is estimated at about 136 trillion KRW, which is roughly 13% of SK Hynix's market capitalization. There were concerns that a separate listing of Solidigm could trigger a discounting phenomenon where the corporate value of its parent companies becomes undervalued.
Consequently, shareholders protested, and financial authorities repeatedly emphasized that the company falls under regulations concerning double listings.
[Lee Eok-won / Financial Services Commission Chairman (October 22, National Assembly Audit) : (Is it subject to the current double-listing guidelines or not? Yes, it is subject to the double-listing guidelines.)]
SK Hynix shares closed the regular trading session up by more than 4% as concerns over Solidigm's double listing were lifted.
[Kim Jae-seung / Researcher, Hyundai Motor Securities : Because it somewhat resolved the parts that investors were worried about, you could say that investor sentiment has recovered a little bit. (However) the withdrawal of the IPO could also manifest as questions or doubts about how capital will be raised going forward.]
The KOSPI, which plummeted over 4% right after the market opened due to credit risks surrounding U.S. AI investment companies, closed 0.3% higher at 5,550, driven by the rebound of SK Hynix and other factors.
(Photo: Seol Chi-hwan, Kang Si-woo | Video Editing: So Ji-hye | Design: Byun Da-young)
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