SK Hynix has abandoned its plans for a pre-initial public offering (IPO) investment of 5 trillion KRW (approximately 3.78 billion USD) in its U.S. subsidiary, Solidigm.
In a disclosure on Friday, SK Hynix stated that the overseas subsidiary, Solidigm, has been exploring various funding options to expand production capacity and boost competitiveness. However, after a comprehensive evaluation of capital market conditions, it has decided to discontinue our review of both pre-IPO and IPO options.
The company considered multiple financing strategies before ultimately opting against pursuing the pre-IPO and IPO routes.
Solidigm, established by SK Hynix through its acquisition of Intel Corporation’s NAND flash business, is a U.S. subsidiary that primarily manufactures enterprise solid-state drives (eSSD) for artificial intelligence (AI) data centers.
Recent reports of Solidigm’s potential U.S. stock market listing sparked concerns among investors. Some worried that a dual listing could dilute shareholder value and potentially diminish returns for the parent company’s stockholders.