AI NewsWaveSK Hynix Halts Review of IPO for U.S. Subsidiary Solidigm
Key points
- SK Hynix halts Solidigm IPO review
- Company says it is reassessing capital market conditions and share price
- IT Chosun offers a view of avoiding AI bubble concerns
SK Hynix said on the 23rd that it is halting its review of a pre-IPO and initial public offering (IPO) for Solidigm, its U.S. NAND flash subsidiary and second-tier subsidiary.
According to AI Times, the company explained that Solidigm's growth potential and need for investment have not changed. It said it reconsidered whether an IPO would be the most favorable choice for SK Hynix and its existing shareholders in light of recent capital market conditions and share price movements.
IT Chosun pointed to a different background. It reported an analysis saying that on the surface the move appears to accept domestic shareholders' backlash against "double listing," but behind it lies a strategic calculation to avoid the "AI bubble" fears and profitability doubts that have hit the New York stock market. What was relayed as the company's explanation is capital market conditions and share price movements, while the analysis IT Chosun conveyed cites the double-listing backlash and AI bubble fears. The emphasis differs.
Earlier, on the 19th, EBN reported that Solidigm could raise up to 20 trillion won through an IPO. The report said expectations are growing for greater capacity to invest in high-bandwidth memory (HBM).