SK Hynix's Solidigm IPO May Breach Rules

South Korea's Financial Supervisory Service has stated that SK Hynix's Solidigm listing could breach dual-listing rules, with the Financial Services Commission awaiting an official interpretation on whether a domestic securities registration filing is required. The potential listing could value Solidigm at up to $150 billion.

The warning from the Financial Supervisory Service comes as Solidigm, a US subsidiary of SK Hynix, considers an initial public offering (IPO) in the United States. The potential IPO has raised concerns about the protection of minority shareholders of SK Hynix.

Financial Supervisory Service Governor Lee Chan-jin made the remarks during a parliamentary hearing, stating that both the Financial Services Commission and the watchdog had judged that the potential listing could breach dual-listing rules. The FSC has been awaiting an official interpretation of whether the proposed offering would require a domestic securities registration filing.

SK Hynix has said it would evaluate measures to protect its shareholders in response to market concerns surrounding a potential Solidigm IPO. The company's response comes after Reuters reported in September that Solidigm was considering an IPO as early as next year, which could value the US subsidiary at up to $150 billion.

## Why it matters The potential listing of Solidigm has significant implications for SK Hynix and its shareholders. If the listing is found to breach dual-listing rules, it could lead to regulatory action and impact the company's plans for the IPO. The Financial Services Commission's review of the proposed offering will be closely watched by investors and regulators, as it could set a precedent for future listings by Korean companies in the US.

The stakes are high, with the potential listing valuing Solidigm at up to $150 billion. The outcome of the regulatory review will be crucial in determining the fate of the IPO and the impact on SK Hynix's shareholders. As the situation unfolds, investors and regulators will be closely monitoring the developments to ensure that the rights of minority shareholders are protected and that the listing complies with relevant regulations.