SK Hynix shares rebound after initial drop on scrapped Solidigm IPO plans
Source: CNBC ·
SK Hynix shares rebound after an inital drop in early trading, following halted review of Solidigm IPO plans in the U.S.
From the source
Shares of South Korean chipmaker SK Hynix rebounded on Friday after falling as much as 3% earlier in the session, following the company's decision to halt a review of a potential U.S. initial public offering for its subsidiary Solidigm. The stock reversed earlier losses to trade 3.2% higher. Josh Gilbert, lead analyst for APAC at investment platform eToro, said the stock's rebound suggested that concerns over a potential Solidigm IPO had been weighing on investor sentiment. "SK Hynix shareholders have got the outcome they were pushing for," Gilbert said, adding that "in the short term, it removes a governance worry and keeps Solidigm's value inside the company." He explained that SK Hynix faces the challenge of funding Solidigm's growth without compromising share buybacks and dividends, as the company needs to demonstrate a credible funding plan as it prepares to report earnings next week. "Solidigm will halt its review of potential pre-IPO and IPO options," the company said in the…