Kioxia Plans October IPO, Valuation Over $10 Billion

Kioxia Holdings, a leading global manufacturer of NAND flash memory, has officially submitted its application for an initial public offering (IPO) on the Tokyo Stock Exchange as of August 23. The company plans to launch its IPO in October, capitalizing on the increasing demand for semiconductors driven by advancements in artificial intelligence (AI).

The anticipated market valuation for Kioxia is expected to exceed 1.5 trillion yen (about $10.3 billion), positioning it as the largest IPO on the Tokyo Stock Exchange this year. The company aims to use the proceeds to meet the growing demand for storage chips propelled by the AI sector.

Kioxia, which ranks as the world's third-largest NAND flash memory producer, was established as an independent entity from Toshiba in 2018 and rebranded in 2019. The company is primarily owned by Bain Capital and South Korea's SK Hynix through a special purpose vehicle, holding 56% of the shares, while Toshiba retains a 41% stake.

Sources reveal that Bain Capital and Toshiba intend to reduce their holdings in Kioxia gradually after the IPO. Bain Capital is reportedly collaborating with investment banks to relaunch the IPO, which could raise approximately $500 million. The IPO could begin in the coming weeks.

Should Kioxia's valuation surpass 1.5 trillion yen at the time of its listing, it will exceed the 420 billion yen valuation of Kokusai Electric's IPO in 2023, marking the largest IPO of the year.

This IPO could potentially become the largest since SoftBank’s domestic telecom unit went public in 2018, which was valued at 7.18 trillion yen.