SK Hynix shares fell in South Korea on Monday after a weekend report said Solidigm, the chipmaker’s U.S. subsidiary, is considering an initial public offering in the United States as early as next year. The report said the data storage products maker could be valued at up to $100 billion.
The market reaction was sharp. SK Hynix at one point dropped 5% in Asian trading, marking its biggest intraday decline in two weeks. Shares of SK Square, the company’s largest shareholder, fell more than 8%, while SK Inc., which controls SK Square, slid more than 6%.
The move also revived concerns over the SK Group’s ownership structure. The Korea Corporate Governance Forum said a Solidigm listing would add another layer to the group’s cross-holding structure and deepen its pyramid-style equity arrangement. The forum had previously urged SK Hynix in August to abandon the plan.
SK Hynix shares fell in South Korea on Monday after a report said Solidigm, its U.S. subsidiary, may pursue an initial public offering in the United States, raising fresh concerns about the SK Group’s already complex ownership structure.
A U.S. media outlet reported over the weekend, citing people familiar with the matter, that Solidigm is considering a U.S. IPO as early as next year. The data storage products maker could be valued at as much as $100 billion in the offering.
The report hit SK Group-related stocks in Monday’s Asia session. SK Hynix dropped as much as 5%, its biggest decline in two weeks. SK Square, the largest shareholder of SK Hynix, fell more than 8%. SK Inc., which controls SK Square, was down more than 6%.
The Korea Corporate Governance Forum said a Solidigm listing would add more layers to SK Group’s internal ownership links and deepen its pyramid-style shareholding structure. The forum had urged SK Hynix in August to scrap the plan.
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