SK Hynix drops US IPO plan for Solidigm, newspaper reports
The company said volatile capital markets and weak semiconductor stocks prompted a reassessment of whether a listing would benefit shareholders.
- On Oct 23, South Korean Hynix Inc decided against an IPO for its subsidiary Solidigm, the Korea Economic Daily reported Friday, citing unnamed industry sources.
- Hynix halted its review of potential fundraising options citing volatile capital markets and recent semiconductor stock price trends, reassessing whether an IPO serves existing shareholders.
- Solidigm, the Rancho Cordova, California-based subsidiary of Hynix, had considered an IPO as early as next year that could value the company at up to $150 billion.
- The potential listing had raised concerns over its impact on Hynix shareholder value and regulatory scrutiny over listing a subsidiary overseas while the parent company remains listed in Korea.
- Despite canceling the IPO plans, Hynix stated the move does not reflect any change in the company's growth prospects or investment needs.
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Solidigm halts review of potential IPO options
Solidigm has decided to halt its review of potential pre-IPO fundraising and initial public offering (IPO) options, citing volatile capital markets and recent trends in semiconductor stock prices, SK hynix said Friday. “The decision does not reflect any change in the company’s growth prospects or investment needs,” SK hynix said in a press statement. “Rather, it reflects a reassessment of whether an IPO would be the most beneficial option for SK…
SK Hynix has suspended its plans for a pre-IPO and initial public offering of its subsidiary Solidyme, taking into account capital market conditions and stock price trends. The company stated that it needs to re-examine whether a listing would be advantageous to existing shareholders and plans to continue investing to secure production facilities in the U.S. through various financing methods in the future.
SK Hynix is withdrawing its plan to list its grandchild subsidiary, SK Solidyme, on the U.S. stock market. In a public filing on the 23rd, SK Hynix stated, “Our overseas subsidiary, Solidyme, has been reviewing various financing options to expand production capacity and strengthen competitiveness, but comprehensively considering capital market conditions,
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