SK hynix’s NAND flash memory subsidiary Solidigm is reportedly preparing for a U.S. initial public offering, after media reports say it has selected lead underwriters. Bloomberg reports that Solidigm has picked Goldman Sachs and Morgan Stanley as lead managers for an IPO expected to take place next year, with potential proceeds of about $10 billion and a valuation that could reach around $100 billion.
The reports also revive existing controversy related to how Solidigm’s listing interacts with Korean financial rules on parent-subsidiary IPOs. Korea Times notes that Korean regulators generally prohibit parent-subsidiary listings in the domestic market in principle to protect retail investors, while allowing exceptions in specific cases. Because Solidigm’s IPO is reported to be overseas, questions remain about whether SK hynix could face penalties if requirements tied to shareholder protections are not met. Across outlets, SK hynix is described as having previously said nothing had been confirmed regarding such plans, even as new reporting points to concrete steps such as appointing banks.
