SK hynix has ended its review of a possible Solidigm IPO, leaving the funding route for added U.S. production capacity on hold as South Korea’s shareholder-protection rules also apply to overseas subsidiary listings.
In an Oct. 23 filing with the U.S. Securities and Exchange Commission, SK hynix said it stopped examining pre-IPO fundraising and IPO options after weighing capital-market conditions and other factors. The company’s newsroom statement also cited share-price trends. It did not connect the decision to regulatory requirements.
SK hynix described an IPO as one financing path under consideration for Solidigm’s expansion. It said the U.S. subsidiary still needs more production capacity as demand for AI memory grows. The company has not announced a replacement funding route or set a date for another financing decision.
South Korea’s Financial Services Commission (FSC) said its approved framework took effect Aug. 3. It applies when a listed parent’s controlled, unlisted subsidiary seeks a listing, including on an overseas exchange. The parent’s board must assess potential effects on shareholders, consider safeguards, communicate with shareholders, document its decision and disclose the process.
The FSC said it developed the framework amid concerns that separate listings could harm shareholders in the listed parent. The proposal defines a duplicate listing as one in which a controlled subsidiary goes public while its parent is already listed.
Reuters reported Sept. 25, citing three people familiar with the matter, that a potential offering could value Solidigm at up to $150 billion and raise $15 billion. Reuters said the plan was preliminary and could change; SK hynix did not announce those terms. The company said it would continue reviewing financing options, but gave no timetable for a new decision.
