Solidigm, the NAND flash business owned by SK hynix, has selected lead banks for a U.S. initial public offering planned for next year, according to people familiar with the matter.

The South Korean chipmaker's flash memory unit has chosen Goldman Sachs and Morgan Stanley as lead banks for the offering, which could raise around US$10 billion, the people said.

Solidigm is also working with the two banks to finalize a pre-IPO funding round, the people said.

JPMorgan, Citigroup and UBS have also been selected to work on the Solidigm IPO, the people said. Earlier reports said Solidigm could list as soon as next year at a valuation of up to US$100 billion.

The discussions are ongoing and the arrangements could still change, with more banks potentially joining, the people said.

SK hynix said in a statement on its website on Sept. 30 that it is considering various options to strengthen Solidigm's competitiveness, but has not decided on a funding plan, and any decision will take long-term shareholder value into account.