SK Hynix has halted plans for a U.S. IPO of Solidigm, its NAND flash and solid-state drive (SSD) unit. The company cited recent capital market conditions and the need to reassess benefits for shareholders. The decision also follows concerns from South Korean regulators and shareholders about potential share dilution and duplicate listings.
SK Hynix shares rose more than 4% after the announcement. Investors appeared to welcome the decision, which eased fears of dilution that had recently pressured the stock.
SK Hynix said Solidigm’s growth prospects and investment needs for U.S. expansion remain unchanged as it works to meet AI-related demand. The company will explore alternative financing options.