This article first appeared on GuruFocus .
SK hynix ( SKHY ) fell about 4% in early Monday trading after reports that its U.S.-based storage subsidiary Solidigm is exploring an initial public offering that could take place as early as next year and value the business at up to $100 billion, according to media reports.
The proposed listing drew attention to SK Hynix's ownership structure. Investor groups cited by Bloomberg said a public offering could add another layer to the company's corporate hierarchy, a development that some governance advocates have previously opposed.
The reaction spread across the broader SK Group. SK Square, the largest shareholder of SK Hynix, dropped more than 8%, while SK Inc., which controls SK Square, retreated more than 6%, according to the report.
Solidigm was formed after SK Hynix acquired Intel's NAND flash and storage business and now supplies storage products used in data centers and artificial intelligence infrastructure. The company is evaluating strategic options to strengthen competitiveness, though SK Hynix has said no final decision has been made regarding a listing.
