SK hynix Rises After Canceling Solidigm U.S. IPO
SK hynix shares gained 4% after the company abandoned a planned U.S. listing of its Solidigm flash-memory unit, which could have raised about $10 billion. Korean regulators and shareholders had raised concerns that the offering would amount to a duplicate listing and dilute existing investors. Without IPO proceeds, Solidigm's expansion will need to be funded from SK hynix's own cash.
SK hynix confirmed the decision in a regulatory filing shortly after Bloomberg reported it Thursday evening. Solidigm has halted both its pre-IPO financing work and the listing process. Korean financial authorities, including the Financial Supervisory Service and Financial Services Commission, had argued the offering fell within the country’s duplicate-listing limits.
The canceled deal could have raised roughly $10 billion and reportedly valued Solidigm at as much as $100 billion, around one-seventh of SK hynix’s market value. SK hynix instead retains full ownership. Its shares closed Thursday at 3.0 times forward earnings, below their 4.0 times average since the company’s July U.S. listing.
The decision may reassure minority shareholders and Korean retail investors who worry about dilution, potentially supporting confidence in Seoul’s efforts to narrow the Korea discount. Solidigm employees and customers could be affected if expansion slows or shifts funding priorities, while SK hynix’s buyback commitments may compete with capital spending. Broader semiconductor supply and prices may see limited near-term effect, though funding constraints could influence long-term capacity decisions.