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SK Hynix scraps Solidigm US IPO after shareholder concerns. (Bloomberg) - SK Hynix Inc. (SKHY) 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-IPO investment process that was being pursued alongside the listing, according to a regulatory filing on Friday. Solidigm, SK Hynix's flash-memory subsidiary, had selected Goldman Sachs Group Inc. and Morgan Stanley as lead banks for a potential US listing next year. SK hynix Inc. (SKHY). 137.02 +5.33 (+4.05%) At close: October 23 at 4:00:00 PM EDT 136.98 -0.04 (-0.03%) After hours: October 23 at 7:59:41 PM EDT The reversal follows concerns by South Korean regulators that the planned offering could amount to a "duplicate listing," potentially diluting the interests of existing shareholders. Financial Supervisory Service Governor Lee Chan-jin told lawmakers earlier this week that 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." (C) 2026 Bloomberg L.P.

Korea scrutinizes Solidigm US IPO on duplicate listing concern. October 19, 2026 at 11:11 AM GMT+2 Takeaways by bloomberg aisubscribe. South Korean regulators are examining whether a proposed US initial public offering of SK Hynix Inc.'s unit Solidigm would count as a "duplicate listing," as some lawmakers push for stronger protection of minority shareholders. Solidigm, which is the Korean chip-making giant's flash memory subsidiary, has selected Goldman Sachs Group Inc. and Morgan Stanley as lead banks to work on its planned US IPO next year, in a deal which could raise about $10 billion.

SK Hynix's Solidigm listing sparks overlapping Controversy. Solidigm's $100B valuation raises shareholder concerns over diluted stakes, regulatory gaps in overseas listings Updated 2026.10.18. 15:49 Controversy over overlapping listings is growing as Solidigm, the U.S. grandchild company of SK Hynix, pushes for a Nasdaq listing next year. Bloomberg reported on October 7 (local time) that Solidigm has appointed Goldman Sachs and Morgan Stanley as lead underwriters. It is discussed that the company will raise 10 billion dollars through a public offering, and its enterprise value could reach up to 100 billion dollars after listing. Solidigm is a company established in the U.S. by SK Hynix, which acquired Intel's NAND flash business for 9 billion dollars. It manufactures storage devices (SSDs) for data centers. Its first-half sales this year were 12.25 trillion Korean won, accounting for about 9% of SK Hynix's total sales. On August 5, SK Hynix disclosed, "Solidigm is reviewing measures to strengthen competitiveness, but nothing has been finalized." It reiterated the same stance in a re-disclosure on September 4. However, movements interpreted as preparation for listing continue. Solidigm recently hired Andres Castillon, a former Qualcomm executive, as vice president of government affairs. Government affairs involve dealing with regulatory bodies. This is the first time since Solidigm's launch in 2021 that it has appointed a head of government affairs. Castillon will also handle matters related to the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments. Investment banking (IB) circles suggest Solidigm raised 5 billion dollars in pre-IPO funding. Overlapping Listings, Concerns Over Reduced Shareholder Stake Overlapping listings refer to a parent and subsidiary being listed simultaneously. Above Solidigm are the U.S. intermediate entity AI Company, SK Hynix, SK Square, and SK Inc. Among these, SK Hynix, SK Square, and SK Inc. are already listed in South Korea. If Solidigm is listed, four companies in a single lineage will be publicly traded. The Korean Corporate Governance Forum criticized this as "an unprecedented five-tier overlapping listing attempt globally," meaning five companies from SK Inc. to Solidigm are linked. Shareholders worry their stakes will shrink. Currently, all profits from Solidigm go to SK Hynix. If Solidigm issues new shares to external investors, profits must be shared. There is also the issue of Solidigm's value, previously reflected in SK Hynix's stock price, shifting to Solidigm's stock. SK Hynix also noted in a June filing with the U.S. Securities and Exchange Commission (SEC) that a subsidiary's listing could negatively impact its stock price. On August 6, immediately after the listing speculation surfaced, SK Hynix's stock price fell over 10% in a single day. Regulatory gaps exist. The Financial Services Commission and Korea Exchange implemented overlapping listing guidelines on August 3, requiring parent companies to assess impacts on shareholders and prepare protection measures. These obligations apply to overseas listings. However, the exchange's ability to screen overseas listings is limited. Since Solidigm is listing on Nasdaq, not the Korea Exchange, the exchange cannot enforce these guidelines. Penalties for violating listing contracts are capped at 1 billion Korean won per company. Overseas regulations are also lax. The Fair Trade Act mandates that a holding company's grandchild must own 100% of domestic affiliates, and great-grandchildren cannot hold domestic affiliate shares. This prevents endless expansion of corporate hierarchies. However, these rules apply only to domestic affiliates. As U.S. entities, AI Company and Solidigm are exempt. The Fair Trade Act requires disclosing shareholders of overseas affiliates but does not restrict expanding hierarchies through foreign entities. Conflicts of Interest Over Pre-IPO Investments by Former CEO's Fund and Affiliates Suspicions surround pre-IPO equity investments. Former SK Hynix President No Jong-won established the private equity firm Techbridge Investments in the U.S. No led SK Hynix's acquisition of Intel's NAND business as chief financial officer in 2020 and served as Solidigm's co-CEO from 2023 to 2025. Techbridge registered with the SEC on August 2 (local time). IB circles speculate Techbridge is a key investor in Solidigm's pre-IPO round. SK affiliates' investments are also under scrutiny. SK Inc., SK Innovation, and SK Telecom committed to investing 1.11 billion dollars in AI Company by 2030. Critics argue this was a "preemptive purchase" before the listing's expected value surge. SK Hynix defended it as part of the group's AI strategy. The Governance Forum raised concerns about "wealth transfer." Depending on which company generates profits, Chairman Chey's share varies. Chey directly holds 17.9% of SK Inc. (as of June). Profits from SK Inc. directly benefit Chey, but SK Hynix profits pass through SK Square and SK Inc., reducing Chey's share due to profit-sharing at each tier. This explains why SK Inc. and SK Telecom's investments in AI Company are problematic. SK Telecom, a direct subsidiary of SK Inc., is closer to Chey than SK Hynix. Their purchases were of AI Company shares, not Solidigm. If Solidigm's valuation rises post-listing, AI Company's value increases. If SK Inc. and SK Telecom bought these shares cheaply pre-listing, the gains would benefit them - not SK Hynix shareholders, who would have otherwise shared the profits. Post-listing transactions between SK Hynix and Solidigm could also be contentious. Solidigm reportedly sources wafers (semiconductor substrates) from group affiliates. Currently, pricing has minimal impact since Solidigm's profits mostly flow to SK Hynix. Post-listing, however, cheap wafer transfers would reduce SK Hynix's profits and increase Solidigm's, benefiting external shareholders. Conversely, expensive transfers would harm Solidigm shareholders. Business Circles: "Attracting Overseas Capital Benefits the Group" Counterarguments exist. Business circles and some securities analysts view the listing as a way to recover and reinvest funds from the Intel acquisition. Kim Young-gun, a Mirae Asset Securities researcher, stated, "It is reasonable to see this not as an overlapping listing but as a means to recover M&A investment and secure funds for future investments." If the company valued at 9 billion dollars achieves over 11 times its acquisition price, most gains would go to SK Hynix shareholders, who hold controlling stakes. Domestic fundraising is challenging. Another way to fund Solidigm is through SK Hynix's rights offering. However, SK Square, the largest shareholder of SK Hynix, holds just over 20% of its shares. The Fair Trade Act requires SK Square to maintain at least 20% ownership. If SK Hynix issues new shares, SK Square must invest to retain its stake. Conversely, listing Solidigm allows SK Square to preserve control without additional investment, as new shareholders fund the company. The key is convincing SK Hynix shareholders. They ask two questions: First, why list Solidigm separately? Solidigm is reportedly considering building a new NAND factory in the eastern U.S. Kwon Jae-yeol, a professor at Kyung Hee University Law School, said, "Using listing funds to expand U.S. NAND facilities would ultimately boost SK Hynix's value." Second, how will reduced shareholder stakes be compensated? The impact depends on the number of new shares issued and whether existing shares are sold back to the parent. If cash from the listing is returned to shareholders via dividends or buybacks, losses can be mitigated. Lee Young-gon, head of Toss Securities Research Center, said, "Capital allocation principles and shareholder return policies must be presented together." · This article has been translated by Upstage Solar AI. Editor's Pick