SK Hynix Surges Over 4% as Solidigm Drops U.S. Listing Plans

[Anchor]

SK Hynix has decided to halt its push to list its sub-subsidiary, Solidigm, on the U.S. stock market. With concerns over double listing finally put to rest, shares of SK Hynix jumped more than 4 percent today (the 23rd).

Reporter Lee Tae-gwon has the details.

[Reporter]

SK Hynix announced this morning through a regulatory filing that it is halting the review of Solidigm's listing on the U.S. Nasdaq.

This comes 79 days after the review process became public on August 5.

SK Hynix explained the decision by stating, "Considering recent capital market conditions and stock price trends, we determined that a re-evaluation is necessary to see if an initial public offering is the most advantageous choice for SK Hynix and our existing shareholders."

Solidigm, launched after SK Hynix acquired Intel's NAND flash memory business in 2021, had been considering a U.S. listing to secure funding for new factory investments and other financial needs.

However, as concerns over AI investments grew and semiconductor stocks fluctuated, the company likely concluded that it would be difficult to receive a fair valuation even if it went public.

Controversy over double listing also played a role.

Currently, Solidigm sits within a five-tier governance structure stemming from the top holding company.

Solidigm's value is estimated at about 136 trillion won, which is roughly 13 percent of SK Hynix's market capitalization. There were concerns that a separate listing of Solidigm could lead to a discount phenomenon, undervaluing the parent companies.

As shareholders voiced strong opposition, financial authorities repeatedly emphasized that the case falls under regulatory oversight regarding double listings.

[Lee Eok-won / Financial Services Commission Chairman (at the National Assembly audit on the 22nd): (Is this subject to the current double listing guidelines or not? Yes, it is subject to the double listing guidelines.)]

With concerns over Solidigm's double listing alleviated, SK Hynix shares closed the regular session up more than 4 percent.

[Kim Jae-seung / Analyst, Hyundai Motor Securities: Because it partially resolved what investors were worried about, you could say investor sentiment has recovered somewhat. However, the cancellation of the listing could also manifest as questions or doubts about how capital will be raised going forward.]

The KOSPI, which plunged over 4 percent immediately after the opening bell due to credit risks surrounding U.S. AI investment firms, rebounded on the back of SK Hynix's recovery and closed 0.3 percent higher at 5,550.

(Video reporting: Seol Chi-hwan, Kang Si-woo | Video editing: So Ji-hye | Design: Byun Da-young)
※ Please note: This article was translated by AI and may contain errors.