SK Hynix abandons its Solidigm listing plan, stock price tumbles 8%

SK Hynix has abandoned its plan to list its US-based memory chip subsidiary, Solidigm, on NASDAQ, terminating a potential initial public offering (IPO). The deal was expected to raise approximately $10 billion.

This plan has met with opposition from some shareholders. The concerned shareholders are worried about their shareholding being diluted and believe that they already hold this business through SK Hynix. A separate listing would result in the division of their existing equity.

The company confirmed that Solidigm will cease Pre-IPO financing and IPO evaluation, stating that the reason is "capital market conditions and other factors."

This decision means that SK Hynix needs to find other ways to provide funding for the expansion of Solidigm.

While concerns about the continuous rise in spending on AI in the market are weighing on chip stocks, SK Hynix has withdrawn its listing plan this time. Its stock price has fallen by 8%.

Author: Qadir AK