TLDR
- SK Hynix shares dropped about 5% in Seoul trading, the biggest drop in two weeks, after Bloomberg reported Solidigm may pursue a US IPO.
- The potential listing could value Solidigm at up to $100 billion as soon as 2027.
- SK Square fell more than 8% and SK Inc. dropped more than 6% on the news.
- Solidigm was formed after SK Hynix bought Intel’s NAND and SSD business for $9 billion.
- SK Hynix’s US-listed ADRs remain roughly 25% above their Nasdaq offering price despite the pullback.
SK Hynix stock fell around 5% on Monday, its worst day in two weeks. The drop followed a Bloomberg report that Solidigm, the company’s US storage subsidiary, is weighing an initial public offering.
The potential IPO could come as soon as next year. Reports suggest a valuation as high as $100 billion.
Overnight trading in the US saw SK Hynix’s ADRs slip more than 3% ahead of Monday’s session. Even with the drop, the stock sits about 25% above its Nasdaq offering price of $149.
The reaction wasn’t limited to SK Hynix. SK Square, the company’s largest shareholder, tumbled more than 8%. SK Inc., which controls SK Square, fell more than 6%.
Broader market pressure played a role too. Chipmakers including Samsung Electronics also slid as oil prices climbed and investors pulled back from risk.
Why Solidigm Matters
Solidigm was created after SK Hynix acquired Intel’s NAND and SSD business in a $9 billion deal. The unit gives SK Hynix a foothold in enterprise SSDs and data-center storage.
That’s a different lane from SK Hynix’s core DRAM and high-bandwidth memory business. Solidigm’s SSD lineup ties directly into AI data-center demand, an area SK Hynix has flagged as a growth priority.
SK Hynix owns Solidigm through a US subsidiary called AI Company. That structure makes Solidigm what’s known as a “grandchild company” within the wider SK Group.
Ownership Structure Concerns
An IPO would add another layer to an already complex ownership chain. The Korea Corporate Governance Forum, a nonprofit representing investment professionals, warned in August that SK Hynix should drop the idea altogether.
The group argues a US listing would deepen SK’s pyramid-style ownership structure. That’s the kind of setup where control sits at the top through a web of smaller stakes rather than direct ownership.
Not everyone sees it as a red flag though. Jung In Yun, chief executive of Fibonacci Asset Management Global, said he’d be “watchful rather than alarmed.”
Yun noted a US listing could unlock value for Solidigm and fund its expansion plans. The tradeoff is that SK Hynix shareholders would give up a slice of future earnings from the unit.
He pointed to two factors that matter most here: valuation and how the proceeds get used. Selling a small stake at a strong price could create value, he said, while heavy dilution without a clear investment return would be a problem.
SK Hynix has had a strong run since its Nasdaq debut less than three months ago. The ADRs opened at $170 after pricing at $149, then hit a post-listing high of $198.63 on September 9, about 33% above the offering price.
Monday’s pullback trimmed some of those gains but didn’t erase them. SK Hynix remains up roughly 25% from where it started trading in the US.
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