TLDR
- SK Hynix (SKHY) stock rose about 5% in pre-open trading Friday to $138.4 after the company halted its Solidigm IPO review.
- The underlying Seoul-listed stock reversed an early 4% loss to close up 4.4%.
- South Korean regulators had said a U.S. listing could break dual listing rules.
- An eToro analyst said the move keeps Solidigm’s value inside the company.
- Third-quarter earnings are due later this month, and funding plans are in focus.
SK Hynix (SKHY) stock rose about 5% in pre-open trading Friday to $138.4. The move came after the company scrapped its review of a Solidigm IPO.
The U.S.-listed ADR was up $6.34 in quote data. It had dropped 8% in the prior session.
In Seoul, the underlying stock erased an early loss of more than 4%. It closed up 4.4%.
The KOSPI also bounced back from an intraday drop of more than 4%. It finished the day modestly higher.
SK Hynix said it halted its review of a pre-IPO fundraise and IPO options for Solidigm. It pointed to capital market conditions and recent stock price trends.
Why the IPO Plan Was Dropped
The company said market volatility had grown and added to a broader correction in chip stocks. That led it to rethink whether an IPO would help existing holders.
South Korean regulators had also weighed in. The Financial Supervisory Service said Monday that a U.S. listing could break the country’s dual listing rules.
The IPO had been expected to raise as much as $15 billion. It would have valued the unit at roughly $150 billion.
SK Hynix said Solidigm’s investment needs have not changed. It will keep looking at other ways to pay for growth.
The company still wants a new U.S. chip plant to meet AI memory demand. It said Solidigm’s current facilities have limited capacity.
What Analysts Are Watching
Josh Gilbert of eToro said holders “got the outcome they were pushing for.” He said the move removes a governance worry and keeps Solidigm’s value in house.
Gilbert said the company now needs a credible funding plan that protects buybacks and dividends. Earnings are due next week.
A Goldman Sachs note said a bigger ADR float could one day lead to Nasdaq 100 inclusion. That could bring an estimated $15 billion in passive inflows.
Before the bounce, the ADR had slipped close to its 52-week low of $124.8. So Friday’s pop was a nice change for holders.
Thursday was rough for tech. The Nasdaq Composite fell 2.6%, its worst day since June, while Nvidia dropped 4.4% and AMD fell 8.1%.
Nvidia CEO Jensen Huang told CNBC he does not expect a memory chip oversupply by 2029. CoreWeave fell 10% the same day.
On Friday, the Nasdaq Composite was roughly flat and the S&P 500 edged lower. SK Hynix is due to report third-quarter results later this month.
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