[Edaily Reporter Shin Ha-yeon ] SK hynix(000660)is trading lower in premarket trading amid the fallout from a sharp decline in U.S. semiconductor stocks. However, concerns over shareholder value dilution due to a dual listing have eased following the suspension of the initial public offering (IPO) review for its U.S. subsidiary Solidigm, resulting in a smaller decline compared to SamsungElectronics(005930).

As of 8:07 a.m. on the 23rd, on the Nextrade pre-market, SK hynix(000660)is trading at 1.2 million won, down 23,000 won (1.88%) from the previous trading day. At the same time, SamsungElectronics(005930)is trading at 206,500 won, down 8,000 won (3.73%). SK hynix’s decline is 1.85 percentage points less than that of SamsungElectronics.

SK hynix announced in a regulatory filing before the market opened today that it has decided to suspend its review of Solidym’s pre-IPO and IPO plans.

The company stated, “Solidigm, our overseas subsidiary, has been reviewing various financing options to expand production capacity and strengthen competitiveness; however, after comprehensively considering factors such as the conditions for the subsidiary’s listing, we have decided to suspend consideration of a pre-IPO and initial public offering (IPO).”

Recently, news that Solidigm was pursuing a listing on the U.S. stock market and pre-IPO funding raised concerns among SK hynix shareholders about the erosion of shareholder value due to a dual listing. These concerns grew as there was a fear that the growth achievements of a key subsidiary would be diluted among external shareholders, potentially leading to a discount on the parent company’s enterprise value.

Against this backdrop, this decision aims to alleviate concerns regarding duplicate listings and the dilution of parent company shareholder value that had been raised in connection with Solidigm’s separate listing. However, in pre-market trading today, investor sentiment remains subdued following last night’s sharp decline in U.S. tech and semiconductor stocks, which is weighing on the stock price.

On the 22nd (local time), the Nasdaq Composite Index fell 2.60% and the Philadelphia Semiconductor Index dropped 6.7% on the New York Stock Exchange. Selling pressure concentrated on tech and semiconductor stocks as concerns over funding burdens and profitability—stemming from Meta’s massive investment in artificial intelligence (AI)—resurfaced.

SK hynix was unable to escape the downward trend amid the deterioration of semiconductor investment sentiment originating in the U.S., though the resolution of uncertainties surrounding Solidigm’s IPO may have partially limited the extent of its decline.