SK Hynix scraps Solidigm US IPO after shareholder opposition, ‘duplicate listing’ concerns
This follows regulatory concerns that the offering could potentially dilute existing shareholders
Published Fri, Oct 23, 2026 · 08:28 AM
SK HYNIX has scrapped plans for a US listing of its Solidigm unit after facing strong shareholder opposition and regulatory scrutiny over concerns that the move could undermine minority investor interests.
The South Korean chipmaker has also halted a pre-initial public offering investment process that was being pursued alongside the listing, according to a regulatory filing on Friday (Oct 23).
Financial market volatility and recent share price trends were also reasons cited by the world’s second-biggest memory maker. Despite strong business performance at both SK Hynix and Solidigm, the company said a broader correction in semiconductor stocks had prompted it to reconsider the listing.
SK Hynix’s Seoul-listed shares have plunged 58 per cent from their June peak, battered by worries over slowing memory chip demand and a broader sell-off in semiconductor stocks following the company’s blistering rally.
The decline has been exacerbated by investor fears that a separate listing of Solidigm could dilute existing shareholders’ interests and further complicate SK Group’s ownership structure.
“In light of recent capital market conditions and share price trends, Solidigm determined that it was necessary to reassess whether an IPO would be the most beneficial option for SK Hynix and its existing shareholders at this time,” the company said in a statement.
The move follows several high-profile global IPO pullouts amid investor concerns over the artificial intelligence trade and heightened market volatility. Solidigm’s retreat, however, was driven largely by regulatory opposition in South Korea.
Solidigm’s growth prospects unchanged
The decision comes just weeks after SK Hynix said it was reviewing various options to strengthen Solidigm’s competitiveness, but that no decisions had been made.
Solidigm, based in Rancho Cordova, California, is SK Hynix’s US subsidiary specialising in Nand flash memory and solid-state drives.
SK Hynix had considered an IPO as one of several ways to finance Solidigm’s expansion amid growing demand for memory chips driven by AI.
The company said raising external capital through a listing could have boosted its consolidated cash flow, helping fund new production facilities while supporting shareholder returns through dividends, share buybacks and share cancellations.
In addition, SK Hynix said an IPO could have helped investors better recognise Solidigm’s growth potential, which it said was not fully reflected in the parent company’s valuation.
SK Hynix said the decision does not not reflect any changes in Solidigm’s growth prospects or investment needs. Solidigm had selected Goldman Sachs and Morgan Stanley as lead banks for a potential US listing in 2027.
The company added that it would continue to explore ways to fund Solidigm’s expansion and enhance shareholder value, including reviewing the timing, scale and financing of future investments.
“This decision does not reflect any change in Solidigm’s growth prospects or investment needs,” it said.
“Duplicate listing” concerns, “Korea discount”
The reversal follows concerns by South Korean regulators that the planned offering could amount to a “duplicate listing”, potentially diluting existing shareholders.
Financial Supervisory Service governor Lee Chan-jin told lawmakers this week both the Financial Services Commission and his agency viewed Solidigm as falling under restrictions on duplicate listings.
The controversy had become a test of Seoul’s efforts to strengthen corporate governance and minority shareholder protections as it seeks to address the country’s chronic equity undervaluation, known as the “Korea discount”. BLOOMBERG, REUTERS
