Kioxia Holdings Corp., a Japanese manufacturer of NAND flash memory, plans to raise 750 billion yen ($4.8 billion) as part of the IPO on the Tokyo Stock Exchange in mid-December. This is reported in the Kioxia press release.
In August 2024, the company filed documents for an initial public offering in order to increase the market value to over 1.5 trillion yen ($10 billion). At the same time, the estimated price of the offer may change depending on market demand.
Kioxia's IPO is aimed at strengthening the companies' positions in the competitive chip market and increasing production capacity amid an increasing technological gap between Kioxia and Samsung Electronics Co. Kioxia is the third largest manufacturer of memory chips in the world after Samsung and SK Group.
In addition, the Kioxia listing will allow Bain Capital, as the majority shareholder, to get the most out of long-term investments that have strengthened its position in the Japanese stock market.
Bain Capital owns a 56% stake in Kioxia, Toshiba Corp. - 41%, and Hoya Corp. — 3%.
Kioxia, which was created based on the development of NAND flash memory by Toshiba in 2018, still produces only one type of chip, which makes it more vulnerable to falling prices in the market compared to competitors Samsung and SK Hynix Inc. The prolonged drop in prices for NAND, used for storing data in individual PCs and smartphones, has reduced Kioxia's ability to invest and expand its offerings.
Kioxia Holdings Corp. — Japanese manufacturer of microchips. The company was previously part of the Toshiba structure. The headquarters is located in Tokyo (Japan).
Read also in our Telegram channel "Mergers and acquisitions. AK&M».
