SK hynix says no decision made on Solidigm IPO, vows to put shareholders first

SK hynix drew a line Thursday against speculation that it is pursuing an initial public offering of its US NAND subsidiary Solidigm, saying "nothing has been decided."

Some investors have raised concerns that a dual listing could dilute shareholder value. SK hynix said it "may consider various options, including attracting outside capital, but will treat long-term corporate value and the interests of existing shareholders as the top priority."

SK hynix said through its newsroom Thursday that it "is reviewing various options to strengthen Solidigm's competitiveness, but no decision has been made."

Speculation about a potential US listing for Solidigm has resurfaced recently, stoking concerns among SK hynix shareholders about value dilution from a dual listing. Act, a retail shareholder platform, said it plans to formally ask the Korea Exchange about the criteria for applying dual-listing regulations in connection with a possible Solidigm listing.

Solidigm is a US entity that SK hynix established in 2021 after acquiring Intel's NAND flash and SSD business. It has been sharpening its competitive edge, focusing on high-capacity enterprise SSDs for AI data centers.

Reuters reported Friday (local time) that Solidigm is considering a US listing as early as 2027 and had conducted a bake-off process to select underwriters from among investment banks. A valuation of up to $150 billion and a fundraising target of around $15 billion were cited, though the report noted that the specific size and timing could change depending on market conditions.

SK hynix said it "continues to review the need for investment to strengthen Solidigm's production capacity and technological competitiveness."

However, the company said it has not settled on how to fund such investment. "We have the financial capacity and can consider various options, including using our own funds," SK hynix said, adding that "having funds does not mean using them entirely for all investment is the best course." How to deploy internal and external capital, it said, "is a matter to be reviewed by weighing market conditions, investment timing and the company's financial situation together."

SK hynix said "all decisions are guided by long-term shareholder value."

The company added that when weighing the use of outside capital, it must "comprehensively consider not only the economic impact on the company and existing shareholders, but also the effects of capital utilization and the financial implications of fundraising."

It said that if a specific plan is reviewed in the future, "the board will closely examine the financial and business implications and faithfully follow all relevant regulations and procedures." The company added that it would also review the impact on existing shareholders and any necessary shareholder-protection measures, and would provide sufficient explanation.