SK Hynix Scraps Solidigm IPO Plans as Stock Plunges 8%

SK Hynix has abandoned plans to list its U.S. storage-chip subsidiary, Solidigm, on Nasdaq, ending a potential IPO that could have raised around $10 billion. The plan faced opposition from shareholders concerned about ownership dilution and splitting their stake in a business they already own through SK Hynix. The company confirmed that Solidigm would halt both pre-IPO financing and IPO evaluations, citing “capital market conditions and other factors.” The decision leaves SK Hynix looking for alternative ways to fund Solidigm’s expansion. The retreat comes as concerns over rising AI spending weigh on chip stocks, with SK Hynix shares plunging 8%.

Source: Coinpedia