SK Hynix announced on October 23 that its subsidiary Solidigm had withdrawn consideration of a pre-IPO and initial public offering because of capital-market conditions. Solidigm, a US company created after SK Hynix acquired Intelโs NAND and SSD business in 2021, produces enterprise SSDs for AI data centers. Existing shareholders had opposed a separate listing because future profits could be separated from the parent company and their ownership value could be diluted.
The withdrawal eases immediate concerns about shareholder value, but Solidigm may now rely more heavily on SK Hynixโs cash flow for capacity expansion and technology investment.