SK hynix shares saw sharp volatility, initially falling 3% before rallying as much as 4.5% following the cancellation of a $10 billion U.S. IPO for its subsidiary, Solidigm. The decision to scrap the listing followed regulatory scrutiny in South Korea regarding dual listing rules and opposition from shareholders. Ultimately, the stock reversed its early losses to trade higher as investors reacted to the news that the flash-memory unit's public offering plans were halted.
The company said Solidigm’s investment needs were unchanged despite the halt in the IPO review, while its shares rose 4.42% at the close after early losses.
Read the full storyThe company said the October 23 decision was tied to capital market conditions and share-price trends, while it continues to assess funding for a U.S. facility to meet AI memory demand.
SK Hynix attributed the decision to capital market conditions and a correction in chip stocks, while Solidigm's expansion needs remain unchanged and the group's net cash stands at 69.4 trillion won.