SK hynix faces backlash over potential Solidigm Nasdaq listing

SK hynix is facing mounting backlash over a potential Nasdaq listing of its U.S. subsidiary Solidigm, with investors warning that the move could effectively create a dual-listing structure and erode shareholder value, according to industry officials, Friday. Solidigm is reportedly exploring a pre-initial public offering (IPO) fundraising of 5 trillion won ($3.5 billion) to 10 trillion won, with Morgan Stanley and Goldman Sachs under consideration as potential underwriters. The company is also recruiting an executive to oversee U.S. Securities and Exchange Commission filings and external financial reporting. "If Solidigm goes public, this would amount to an unprecedented five-tier multiple-listing structure," said Rhee Nam-uh, chairman of the Korean Corporate Governance Forum. He noted that the ownership chain runs from SK Group Chairman Chey Tae-won through SK Inc., SK Square, SK hynix and SK hynix NAND Product Solutions Corp. to Solidigm. Solidigm was established in the U.S. in 2021 after SK hynix acquired Intel’s NAND flash memory business for about $8.8 billion. Rhee argued that the