SK Hynix shares jump 4.4% after scrapping Solidigm IPO plans

SK Hynix shares rose 4.4% on Friday after the South Korean chipmaker abandoned plans for a potential US IPO of its subsidiary Solidigm, citing recent capital market conditions. The stock had fallen up to 3% earlier in the session before reversing despite broader market weakness. The decision followed regulatory scrutiny over concerns that the offering could dilute value for minority shareholders and complicate SK Group's ownership structure. Solidigm had reportedly prepared for a US listing that could have raised about $10 billion at a valuation near $100 billion, with Goldman Sachs and Morgan Stanley selected to work on the deal. The withdrawal adds Solidigm to a growing list of companies shelving IPO plans as investor worries about AI boom sustainability weigh on markets. SK Hynix said the move did not reflect deterioration in the subsidiary's growth prospects, while the controversy touched on South Korea's efforts to address the "Korea discount" in corporate valuations.