Solidigm's Potential U.S. IPO Sparks Market Concerns, SK Hynix Shares Fall as Much as 5%

Odaily News: SK Hynix's Korean shares fell on Monday following reports that its U.S. subsidiary Solidigm may pursue a U.S. listing, triggering market concerns over SK Group's complex ownership structure. U.S. media over the weekend cited people familiar with the matter as saying that Solidigm is considering an IPO in the U.S. as early as next year, which could value the data storage product manufacturer at up to $100 billion. Affected by the news, SK Hynix shares fell as much as 5% during Monday's Asian trading session, marking their biggest drop in two weeks. SK Square, SK Hynix's largest shareholder, saw its shares fall more than 8%, while SK Inc., which controls SK Square, also dropped more than 6%. The Korea Corporate Governance Forum said that Solidigm's listing would further increase multi-layered shareholding relationships within SK Group, deepening its pyramid ownership structure. The forum had urged SK Hynix to abandon the plan in August.