According to media reports, two sources have revealed that KIOXIA, supported by Bain Capital, will have a market value of approximately 750 billion yen (approximately 4.84 billion US dollars) based on the indicated price for its initial public offering (IPO). KIOXIA will receive listing approval from the Tokyo Stock Exchange on Friday (November 22).
Previously, media reports indicated that Bain Capital cancelled KIOXIA's IPO plan in October last year because investors forced the acquiring company to halve its valuation of 1.5 trillion yen.
It is reported that KIOXIA, formerly known as Toshiba Memory, plans to conduct its initial public offering in December. KIOXIA is the first company to choose to operate under the new regulations in Japan, which allow companies to submit registration statements and communicate with investors before obtaining listing approval.
KIOXIA shareholder Bain Capital holds 56% of the company's shares, Toshiba holds 41% of the shares, and Japan's TAG Heuer holds 3% of the shares.
This stock issuance may be KIOXIA's last chance to maintain competitiveness. A successful listing will provide funding to increase production capacity and help it capitalize on the rebound in chip prices.
In the four years since its IPO was first shelved in October 2020, KIOXIA has lagged behind Samsung and SK Hynix in terms of technology. The continued low price of NAND used in smartphones and solid-state drives has dealt a greater blow to KIOXIA than its competitors, as their revenue comes from other products such as DRAM and high bandwidth memory (HBM).
