Business · Companies · 4 hrs ago
Solidaim IPO debate adds uncertainty for SK Hynix shareholders
SK Hynix is trading at a wider valuation discount to Micron, its US memory-chip rival, despite analysts saying the gap is not mainly due to a weaker memory market.
One analysis attributed the widening gap partly to foreign investors selling South Korean shares and to factors that weigh on the country’s market.
A possible US stock-market listing for Solidaim has become another concern for SK Hynix shareholders.
Solidaim makes high-capacity enterprise storage drives used in data centres, including facilities built for artificial intelligence.
A listing could raise money for Solidaim’s growth, but investors worry that separating its shares could reduce the value of SK Hynix and draw investment away from the parent company.
If Solidaim does not list, it may have less room to raise funds, which could also limit growth and shareholder returns.
The proposed IPO could raise about $10 billion, with a listing discussed as early as next year, though the plans may change; Goldman Sachs and Morgan Stanley have reportedly been selected as lead banks.
SK Hynix shareholders are divided over whether its subsidiary Solidigm should list on the US stock market.
Supporters say an IPO could raise funds for Solidigm’s growth and preserve SK Hynix’s investment capacity.
Opponents warn that a separate listing could dilute the parent company’s value and draw investment away from its shares.
An iM Securities analyst said Micron’s price-to-earnings premium over SK Hynix had widened to 1.60 times.
The report attributed the valuation gap mainly to foreign selling and Korea-specific market factors, rather than damage to the memory cycle.
- Who
- SK Hynix shareholders, Solidigm, and SK Hynix.
- What
- Shareholders are debating whether Solidigm should pursue a US IPO, amid concerns about funding and the impact on SK Hynix’s valuation.
- When
- The article was published on October 16, 2026; the IPO was reported as possibly occurring as early as next year.
- Where
- The proposed listing would be on the New York Stock Exchange.
- Why
- Supporters say the IPO could raise capital for growth; opponents fear a separate listing could dilute parent-company value and spread investment demand.
Shareholders opposing Solidigm's IPO
Shareholders supporting Solidigm's IPO
Shareholder value
Shareholders opposing Solidigm's IPO
A separate listing could dilute SK Hynix’s value and raise concerns about cross-listing.
Shareholders supporting Solidigm's IPO
The IPO could fund Solidigm’s growth and potentially return practical benefits to parent-company shareholders.
Funding and investment
Shareholders opposing Solidigm's IPO
The article does not state a specific alternative for raising funds.
Shareholders supporting Solidigm's IPO
Without funding, Solidigm’s growth and SK Hynix’s investment capacity could be constrained.
Solidigm was established when the company acquired Intel’s NAND and SSD business.
Micron’s price-to-earnings premium over SK Hynix had narrowed to 1.40 times by mid-month.
Foreign investors sold a net 3.24 trillion won in the KOSPI market, and SK Hynix shares fell more than 5%.
Hankyung published its report on the valuation gap and the debate over Solidigm’s proposed IPO.
Solidigm’s IPO was reported as potentially taking place as early as next year.
- Micron valuation premium
- 1.60 times SK Hynix’s price-to-earnings ratio, according to iM Securities
- SK Hynix forward PER
- Fell from 4.46 to 3.70 between September 23 and the report
- Foreign net selling
- 3.24 trillion won in KOSPI shares on September 28
- Reported IPO fundraising target
- About $10 billion
- Reported potential valuation
- Up to $100 billion
- Reported IPO timing
- As early as next year
What people are saying
If the cycle were the cause, Micron, with its higher share of commodity memory, should have been de-rated first.
If Solidigm does not list, its ability to raise funds will decline and shareholder returns could shrink; if it does list, there could be concerns about a structural discount.
Who will take responsibility for the dilution of company value and the cross-listing controversy that the parent company’s shareholders must bear?
If funding is blocked, Solidigm’s growth and SK Hynix’s investment capacity will be constrained.