South Korea regulators flag Solidigm IPO as possible dual-listing breach
South Korea's financial regulator says a potential U.S. listing of SK Hynix unit Solidigm could conflict with the country's tighter dual-listing restrictions. The review centers on whether the planned initial public offering would require domestic securities registration and how minority shareholder interests at SK Hynix would be protected.
Highlights
- South Korea's Financial Supervisory Service is reviewing Solidigm's planned U.S. IPO for possible breach of dual-listing rules, as stated by Governor Lee Chan-jin.
- Solidigm, SK Hynix’s U.S. subsidiary, could be valued up to $150 billion if it proceeds with an IPO as early as next year, according to Reuters.
- Tighter dual-listing rules enacted in July require minority shareholder consent, with SK Hynix considering new measures to address concerns about the Solidigm IPO.
Regulatory review of Solidigm listing plans
As reported by Reuters, Financial Supervisory Service Governor Lee Chan-jin says at a parliamentary hearing that regulators are examining whether Solidigm's potential initial public offering in the U.S. requires review under South Korean rules.Lee says both the Financial Services Commission and the Financial Supervisory Service judge the matter to be a violation of dual-listing rules, while the FSC is waiting for an official interpretation on whether the issue is subject to domestic securities registration filing. He makes the remarks in response to a lawmaker's question about protecting minority shareholders in parent company SK Hynix if Solidigm goes public.
Reuters reported in September that Solidigm is considering an IPO as early as next year that could value the U.S. subsidiary at up to $150 billion.
Shareholder protection and market impact
South Korean regulators unveiled tighter dual-listing rules in July, aiming to strengthen protections for minority shareholders when a company seeks to list a subsidiary in South Korea or overseas. Under those rules, boards must obtain consent from minority shareholders before proceeding with such a listing.SK Hynix says earlier this month that it would evaluate measures to protect shareholders in response to market concerns over a possible Solidigm listing. The company is not immediately available to comment on the regulator's latest remarks.
Our earlier article examined India’s disinvestment programme and found that most proceeds since FY 2016 have come from market-linked routes such as ETFs, public issues and buybacks, while strategic sales have played a much smaller role. It also highlighted how the proposed IDBI Bank stake sale could stand out as one of the largest strategic transactions and potentially help the government meet or exceed its annual targets after years of shortfalls.
Latest SK Hynix News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
