SK Hynix Halts Solidigm US IPO Review Once Eyed at $150B

SK Hynix has halted its review of a US initial public offering for Solidigm, the California-based NAND flash and solid-state drive subsidiary that had been discussed at a valuation of up to $150 billion. The company confirmed the decision on October 23, a day after Korea Economic Daily first reported it, according to the Wall Street Journal.

In its statement, the chipmaker said "the decision was made from the perspective of shareholder value, taking current market conditions into account." Goldman Sachs and Morgan Stanley had been picked to lead what reporting pegged as a $10 billion to $15 billion raise.

The reversal followed pushback on two fronts. The heads of Korea's Financial Services Commission and Financial Supervisory Service each raised concerns about duplicate listings, the Seoul Economic Daily reported. Separately, SK Hynix shareholders had argued that a separate listing would dilute their indirect stakes and divert Solidigm's future earnings to new investors.

The problem for SK Hynix now: Solidigm still needs capital. The company said it remains committed to investing in the unit and will explore alternative strategies to enhance shareholder value, a line that in context means funding a planned US fab without the public listing that had been the signature route.