- SK Hynix shares dropped up to 5.1% amid Solidigm IPO reports
- Largest shareholders SK Square and SK Inc. also saw significant declines
- Solidigm's potential US listing could value it near $100 billion
Shares of South Korean chipmaker SK Hynix declined sharply on Monday, weighed down by reports that its subsidiary Solidigm could pursue an initial public offering as early as next year.
The reports have raised questions among investors over the rationale for a potential listing and its implications for SK Hynix's ownership structure.
SK Hynix shares fell as much as 5.1% during the session, while its largest shareholder, SK Square, dropped as much as 7.1%. SK Inc., which holds the largest stake in SK Square, declined as much as 5.4%.
Weekend reports said Solidigm, the US-based semiconductor company acquired by SK Hynix, could seek a US listing that may value the business at as much as $100 billion.
Such a listing could potentially unlock value from Solidigm, but investors are also assessing how it could affect the broader ownership and corporate structure of the SK group.
SK Hynix had said in August that no decision had been taken on a Solidigm listing, following a local media report about the possibility.
The Korea Corporate Governance Forum, a nonprofit organisation representing investment professionals, had also urged SK Hynix to abandon any such plans, arguing that a listing could make the group's ownership structure more complicated.
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Solidigm, headquartered in San Jose, California, was formed after SK Hynix acquired Intel's NAND flash and solid-state drive business.
The deal expanded SK Hynix's presence in the global memory-chip market.
Elsewhere, Samsung Electronics fell 5.4% amid broader risk-off sentiment, with higher oil prices adding to pressure on South Korean equities. The benchmark Kospi index declined 2.7%.
Separately, the stock was quoted at $183.30 on September 28, down $8.26, or 4.31%, from its previous close, according to market data.
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