South Korea's SK hynix announced that it would cancel the Nasdaq listing process for its US subsidiary Solidigm. In light of changes in capital market conditions and share price trends, it decided to discontinue plans to attract pre-IPO investment and pursue a new listing.
SK hynix announced that it had decided to cancel the listing process for its overseas subsidiary Solidigm. After comprehensively considering capital market conditions and share price trends, it decided to discontinue plans to attract pre-IPO investment and pursue an initial public offering.
Solidigm was established in 2021 after acquiring Intel's US NAND flash memory and SSD businesses. Securing production facilities in the US and raising funds for technology development had been cited as the main reasons for the planned Nasdaq listing.
Shareholder opposition and the decline in the share price are believed to have been major factors behind the cancellation of the listing process. Some have also pointed to concerns over the parent-subsidiary listing structure, deepened by the multilayered control structure extending from the group's holding company to Solidigm.
As market volatility increases, the company indicated that it will continue reviewing how to balance Solidigm's growth strategy and shareholder value while investment conditions are reassessed alongside rising demand for semiconductor memory.