SK hynix suspends plans to list Solidigm on Nasdaq — Korea Herald
South Korean chipmaker SK hynix has suspended plans to list its U.S. subsidiary Solidigm on the Nasdaq exchange. Such a move could have valued the flash-memory maker at up to $150 billion. As Korea Herald reports, on October 23 the company explained the decision by market conditions.
Investor reaction and regulator requirements
The suspension of the plans was preceded by shareholder objections and regulatory attention to the risks of dual listing. Investors feared that a separate listing of Solidigm could reduce the value of shares in the Korean parent company. After the decision was announced, SK hynix shares rose 4.42%, despite a broader market sell-off caused by a decline in U.S. technology stocks.
In July, South Korea’s regulator updated its guidelines on dual listings. They do not prohibit such offerings, but require boards of directors to assess the consequences for shareholders and provide mechanisms to protect their interests. Suspending the Solidigm listing deprives SK hynix of one possible way to raise billions of dollars in new capital amid growing investment needs related to artificial intelligence.
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Plans of other Korean groups
The situation may also complicate access to the U.S. capital market for other South Korean conglomerates. Hyundai Motor Group’s robotics unit Boston Dynamics is reportedly considering a Nasdaq listing to finance the development of AI-powered humanoid robots. The company is indirectly controlled by Korea-registered Hyundai Motor, Kia and Hyundai Mobis, which may draw the attention of the local regulator.
Doosan’s hydrogen fuel-cell subsidiary HyAxiom has also accelerated preparations for a Nasdaq listing and invited investment banks to submit underwriting proposals. Under the terms of the proposed put option, Doosan will have to return financial investors’ initial investments and pay a 5% annual return if HyAxiom does not become a public company within five years of the investment.
Dispute surrounding Kakao Mobility
The publication also notes that global investment firm TPG, Kakao Mobility’s second-largest shareholder, is reportedly considering various legal options against Kakao. TPG believes that the technology group deliberately blocked the listing of Kakao Mobility’s American depositary receipts. On September 22, Kakao’s board of directors voted against a proposal to list the company in the United States through ADRs, reportedly due to concerns over the consequences of a dual listing.
