Kioxia Plans U.S. Listing to Attract Global Investors

According to Reuters, Japanese memory chipmaker Kioxia is preparing to list American depositary shares (ADSs) in the United States, a move that could improve the liquidity of its stock, attract greater attention from global investors, and encourage larger international funds to invest in the company.

Kioxia’s shares have surged 456% so far this year, making the company the top-performing constituent of Japan’s Nikkei 225 Index. In May, Kioxia said it was preparing for a U.S. listing through ADSs to broaden its investor base, although it has not yet announced a specific listing date.

Sebastian Thomas, a portfolio manager at Voya Investments’ $14 billion Global Artificial Intelligence Fund, told Reuters on Thursday that Japan has many companies worth watching, particularly those involved in the AI supply chain. However, limited trading liquidity in some Japanese stocks can make it difficult for large funds to build meaningful positions.

Thomas said a U.S. listing could help address this issue by providing international investors with a more accessible trading channel. He pointed to South Korean memory chipmaker SK hynix, which began trading on Nasdaq in July, as an example of how a U.S. listing could improve access for global investors. According to Thomas, the key challenge for large funds is finding companies with sufficient liquidity to support institutional investment.

Voya’s Global Artificial Intelligence Fund works with Sumitomo Mitsui DS Asset Management, with approximately $5 billion of the fund’s assets coming from Japan. Established 10 years ago, the fund has generated a cumulative return of about 600% on a total-return basis, assuming dividends are reinvested before taxes.

The fund does not currently hold Kioxia, nor does it own some of the Japanese technology stocks that have contributed to the Nikkei’s gains this year. Thomas explained that the fund generally focuses on larger companies with stronger trading liquidity, meaning a U.S. listing could potentially lower the barriers to investing in Kioxia.

The fund primarily invests in companies involved in AI infrastructure. Its largest holding is Nvidia, while its portfolio also includes AI application developers and companies that could benefit from wider AI adoption, such as pharmaceutical giant Eli Lilly.

Voya has previously invested in Japanese companies and currently has exposure to memory chipmakers including SK hynix and Micron, although it does not hold Kioxia. Thomas said that a U.S. listing could make it easier for global funds to invest in Kioxia and potentially help the Japanese memory chipmaker gain greater visibility among international AI-focused investors.