KOSPI Rebounds as SK hynix Halts Solidigm IPO Review

SK Hynix withdrew Solidigm's NASDAQ IPO to avoid shareholder value erosion from duplicate listings. The move is expected to improve investor sentiment and stock price, which had declined 33.28% from January 1 to February 22. SK Hynix's stock rebounded 4.42% following the announcement, closing at 1.277 million won. Analysts anticipate further stock price improvement due to shareholder return measures and historic low valuations.

SK hynix has postponed Solidigm's $150 billion US IPO due to semiconductor stock corrections and regulatory scrutiny. Solidigm, a NAND flash subsidiary, reported first-half revenue of 12.25 trillion won ($9.2 billion) and net income of 5.84 trillion won. The decision allows SK hynix to reassess financing options while retaining flexibility for future investments.

SK hynix (000660.KS) shares rose 2.62% after halting its review of a U.S. IPO for Solidigm, its subsidiary. The decision was influenced by capital market conditions and potential shareholder value concerns. Analysts noted possible benefits, such as reduced worries about valuation discounts and improved ADR supply-demand dynamics. The KOSPI index also rebounded from earlier losses, driven by institutional buying and oversold market conditions.

SK Hynix halted Solidigm's IPO and pre-IPO fundraising due to market conditions and share price trends. South Korean regulators raised concerns about dual-listing rules. SK Hynix shares dipped 3% initially. Solidigm produces enterprise SSDs for AI and cloud computing. The decision impacts Solidigm's expansion funding.

South Korea's Kospi index fell to a six-month low, down 2% by noon, with SK Hynix and Samsung Electronics losing up to 4.2% and 5.1% respectively. The decline follows a U.S. tech selloff, with investors concerned about AI spending. SK Hynix canceled a U.S. listing for its unit Solidigm.

Samsung E&A was the top net buyer among ultra-high earners, according to Mirae Asset Securities. The company's Q3 operating profit surged 183.6% YoY to KRW 5006 billion, prompting a forecast upgrade and share buyback plan. Samsung Electronics and SDI also saw net buying, while SK Hynix led net sales. Semiconductor-related stocks experienced mixed trading.