SK hynix halts review of Solidigm U.S. IPO

SEOUL, Oct. 23 (Yonhap) -- SK hynix Inc. said Friday it has decided to suspend plans for the listing of its U.S. subsidiary Solidigm, citing market conditions.

Reports have circulated that Solidigm was considering an initial public offering (IPO) in the United States as early as next year, potentially valuing the subsidiary at up to US$150 billion.

"We have decided to halt its review of a pre-IPO fundraising round and a subsequent IPO after taking into account overall capital market conditions," the South Korean chipmaker said.

However, the company said its commitment to investing in Solidigm's growth remains unchanged and that it will continue to explore alternatives to enhance shareholder value.

SK hynix had considered an IPO as a way to raise external capital to secure new production facilities in the U.S. and meet growing memory demand in the artificial intelligence (AI) era.

An IPO could have boosted the company's consolidated cash flow, providing greater financial flexibility for facility investments and shareholder returns, including dividends, and share buybacks and cancellations, the company had said.

A successful listing could also have enhanced Solidigm's growth potential, which SK hynix believes is not fully reflected in its own corporate valuation, to be reassessed by the market.

SK hynix had been weighing various options, including direct investment and raising external capital through an IPO.

khj@yna.co.kr
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