SK hynix’s Kioxia investment windfall: why abandon a Solidigm listing? | Lee Juyeon and Yoo Shinik [Let’s Go Live]
An independent exercise, not a statement by the video creator or verification of every claim in the video.
Does ownership dilution necessarily reduce stake value?
Assume a hypothetical subsidiary has a pre-money equity value of 100 and is 100% owned by its parent. An external investor pays 25 for new shares. Post-money value is 125 and the parent owns 80%, leaving its stake worth 100. If total value including the new funds later falls to 110, the parent’s stake is worth 88; if it rises to 150, the stake is worth 120. Compare issue pricing and investment outcomes, not just ownership percentages.
Check for yourself
- Does issuing new shares fund the company, or does selling existing shares pay an existing shareholder?
- When valuing the parent’s stake, have subsidiary value or new cash been counted twice?
Limits of application
This hypothetical equity-value calculation assumes no changes in net debt, fees, taxes or discount rates. It does not estimate Solidigm’s actual terms or fair value, or automatically prove that a listing helps or harms shareholders.
- What to look for
- Compare how memory earnings, long-term contracts and shareholder returns can affect valuations through different channels.
- Why it matters
- Separate earnings durability, the use of subsidiary funding and the parent’s retained ownership value, while distinguishing announced decisions from forecasts.
Timeline
9 segmentsThe guests contrast financing benefits from a Solidigm listing with concerns for existing shareholders. The company confirms discontinuing its IPO review, but this does not verify the video’s generalizations about U.S. regulation or stakeholders’ intentions. The announced quarterly dividend of 20,000 won combines a 10,000-won earnings dividend and a 10,000-won special dividend; it is not entirely a special dividend.