SK Hynix Stock: Up 4.7 Percent Following IPO Halt - Börse Express
Article excerpt
SK Hynix gains 4.7% today after the company and its subsidiary Solidigm halted the review of a pre-IPO financing round and an initial public offering. For investors, this shifts the crucial question: the focus is no longer on the potential separate listing, but rather on financing the ongoing investment needs. The share price increase signals relief over the withdrawal. Whether this creates a viable re-evaluation, however, depends on further financing. According to the company, volatile capital markets and the weakness of semiconductor stocks led to the decision. At the same time, SK Hynix reaffirms Solidigm's investment needs and is reviewing alternative financing options. The halt thus eliminates a concrete point of contention, but not the economic task behind it. According to media reports, investors had feared that a separate stock market listing could dilute their stake in Solidigm's earnings. Today's relief cannot therefore be automatically read as an improvement in the operating business. Initially, a feared risk for shareholders is removed. The central touchstone will be the terms of alternative financing. For further valuation, what counts is whether Solidigm can cover its investment needs without unduly burdening the interests of SK Hynix shareholders. This is a different question than approval or rejection of an IPO. In doing so, investors should view the two...
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Reuters reported on Wednesday that SK Hynix is upgrading its NAND flash memory plant in Dalian, China, with at least 240 layers.
