South Korea’s top financial regulators have warned that a potential U.S. IPO for Solidigm, an SK Hynix subsidiary, could violate domestic rules. The Financial Supervisory Service (FSS) and Financial Services Commission (FSC) say the IPO would be subject to “duplicate listing” regulations designed to protect shareholders of a parent company.
The rules aim to prevent a separately listed subsidiary from diluting value for investors in its parent. Before proceeding, SK Hynix and its parent, SK Square, would need to meet strict shareholder-protection obligations.
The regulatory hurdle adds uncertainty to Solidigm’s future. SK Hynix formed the company after acquiring Intel’s NAND and SSD business in 2021.