Solidigm Suspends U.S. Listing Plans... SK Hynix Shares Rebound

[Anchor]

SK Hynix has decided to halt its review of a U.S. Nasdaq listing for its sub-subsidiary, Solidigm. After opening lower, SK Hynix shares are attempting a rebound.

Reporter Kim Hye-min has the details.

[Reporter]

"Considering comprehensive capital market conditions and other factors, Solidigm has decided to suspend its review of pre-IPO and initial public offering (IPO) plans,"

This was disclosed in a regulatory filing by SK Hynix this morning (October 23).

This comes 79 days after it was first reported on August 5 that SK Hynix was preparing for Solidigm's listing on the U.S. Nasdaq.

SK Hynix stated, "Taking into account recent capital market conditions and stock price trends, we determined the need to re-examine whether an IPO is the most advantageous choice for SK Hynix and its existing shareholders."

Solidigm was launched after SK Hynix acquired Intel's NAND flash and SSD businesses in 2021.

In the multi-layered corporate structure running from SK Inc. to SK Hynix and then to Solidigm, a separate listing of Solidigm would require splitting profits, which could diminish the value of the parent companies.

The decision appears to have been decisively influenced by fierce shareholder backlash and falling stock prices, following remarks during parliamentary audits by the Financial Services Commission and the Financial Supervisory Service that "Solidigm's double listing is subject to regulation."

SK Hynix shares opened more than 2 percent lower in early trading, but later reduced losses and rebounded during the session.

This contrasts with the KOSPI falling 2 percent and Samsung Electronics dropping 3 percent, as artificial intelligence and semiconductor-related stocks plunged and international oil prices rose in the U.S. stock market last night.

Industry analysts commented, "This could influence the reversal of foreign selling trends in SK Hynix," adding, "As a decision that addresses concerns over the infringement of shareholder value, it can ease apprehensions regarding the discount and equity dilution caused by double listings."

(Video Editing: So Ji-hye)
※ Please note: This article was translated by AI and may contain errors.