Japanese semiconductor maker Kioxia has applied to list on the Tokyo Stock Exchange, planning to list as early as October 2024 and raise more than $500 million at a valuation of more than $10 billion.
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It has been learned that Kioxia, a semiconductor manufacturer established by spinning off Toshiba's memory business, has applied to list on the Tokyo Stock Exchange. According to sources, the company is aiming to list as early as October 2024.
Japanese chipmaker Kioxia files for Tokyo's biggest IPO of the year
https://www.ft.com/content/4fdc9030-dcde-47b1-a0a0-72e502ead799
NAND Flash Maker Kioxia files for IPO at expected $10.3 billion valuation | Tom's Hardware
https://www.tomshardware.com/pc-components/ssds/nand-flash-maker-kioxia-files-for-ipo-at-expected-dollar103-billion-valuation
Kioxia is the world's third largest flash memory maker after Samsung and SK Hynix, and at the time of writing, a special purpose vehicle established by Bain Capital and SK Hynix owns 56% of the shares, while Toshiba owns 41%.
Kioxia has reportedly filed for an initial public offering (IPO) with the Tokyo Stock Exchange and plans to list as early as October 2024. According to the Financial Times, Kioxia is looking to raise at least $500 million, potentially valuing the company at more than $10 billion. After the IPO, the company will continue to be owned by Bain Capital, SK Hynix, and Toshiba, but Bain Capital and Toshiba plan to gradually reduce their stakes in the company after the IPO.
This IPO will be Kioxia's second attempt at going public. Kioxia had planned to go public in 2020, but postponed it due to uncertainty caused by the outbreak of COVID-19 and the intensifying trade friction between the United States and China. In October 2023, it held merger talks with Western Digital, an American data storage manufacturer, but the deal collapsed just before it was successful.
The Financial Times noted that 'the filing reflects the company's improving business and strong financial performance, which saw it post a record 69.8 billion yen ($6.98 billion) net profit in the second quarter of 2024 and then end production cuts.' Some also believe that the recent AI boom has also sparked interest in semiconductor-related stocks.
Technology media Tom's Hardware said, 'Despite Kioxia's strong financial position, its $10 billion valuation is expected to be cheaper than Samsung and Western Digital. Kioxia's IPO comes as Western Digital splits into two companies, one that makes NAND and SSDs and the other that makes hard drives. After the split, Western Digital's NAND company will control about 12% of the world's NAND memory supply, and Kioxia will control the remaining 12%. The two companies will be significantly behind Samsung and SK Hynix, and even if they were to merge, they would only be able to match SK Hynix in NAND market share.'
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