SK hynix Ends Solidigm IPO Review Citing Market Conditions

SK hynix has ended its review of potential pre-IPO funding and an initial public offering for Solidigm, citing capital-market conditions and share-price trends. The Oct. 23 decision pauses a possible way to finance the U.S. memory unit’s expansion, including additional production facilities for rising demand tied to artificial intelligence.

“This decision does not reflect any change in Solidigm’s growth prospects or investment needs,” SK hynix said. The company will continue reviewing the timing, scale and financing methods for Solidigm’s expansion. It also plans to keep looking for ways to support the unit’s growth and value for existing shareholders.

Solidigm had considered an IPO alongside direct investment to fund additional U.S. production capacity. SK hynix said Oct. 1 that it had not decided on a specific capital plan and would assess external financing for its effects on existing shareholders.

SK hynix established Solidigm after acquiring Intel’s NAND memory and solid-state drive business. The transaction’s first closing took place in December 2021.