[Edaily Reporter An Yu-ri ] SK hynix(000660), which has suspended its review of Solidigm’s U.S. IPO, continues to trade 4% higher in after-hours trading compared to the previous day. This is interpreted as a sign of improved investor sentiment following the halt of Solidigm’s IPO push, which had fueled concerns over dual listings and erosion of shareholder value.

As of 6:20 p.m. on the 23rd, SK hynix was trading in the after-market at 1,272,000 won, up 49,000 won (4.01%) from the previous trading day.

During regular trading hours, the stock closed at 1,277,000 won, up 54,000 won (4.42%) from the previous trading day.

The KOSPI also overcame early weakness to close higher that day. Although it fell in early trading due to the fallout from the sharp decline in U.S. tech stocks, major semiconductor stocks rebounded and recouped the losses.

According to the Korea Exchange, the KOSPI closed at 5,550.30, up 16.53 points (0.30%) from the previous trading day.

Although the index rose, the number of declining stocks significantly outnumbered the number of advancing stocks, suggesting that the rebound in semiconductor stocks—which account for a large portion of market capitalization—drove the index higher.

The market views SK hynix’s stock rebound as a reaction to news that Solidigm has suspended its IPO review.

Solidigm is a company launched in 2021 when SK hynix acquired Intel’s NAND flash and solid-state drive (SSD) businesses.

SK hynix had been considering a pre-IPO and IPO for Solidigm as a means of raising funds to expand production capacity and strengthen competitiveness. However, concerns were raised that if Solidigm were to list in the U.S., SK hynix’s enterprise value could be undervalued or the equity value of existing shareholders could be diluted.

In a regulatory filing released today, SK hynix stated, “Our overseas subsidiary, Solidigm, has been reviewing various funding options to expand production capacity and strengthen competitiveness; however, after comprehensively considering capital market conditions and other factors, it has decided to discontinue its review of pre-IPO funding and an initial public offering (IPO).”