Japanese NAND flash memory giant Kioxia had reportedly planned to delay its October IPO. According to the latest report from Reuters, Kioxia’s major shareholder, U.S. investment firm Bain Capital, abandoned the October IPO plan after investors valued the company at only half of its target.

Reuters reported on the 11th that sources familiar with the matter said investors, citing the slow recovery of the semiconductor market, requested Bain Capital to slash Kioxia’s IPO valuation (market cap at the time of listing) to around half of the target value. This led Bain to abandon the plan to list Kioxia at the end of October.

The report cited two sources stating that while Bain Capital had set a target valuation of 1.5 trillion yen, investors valued the company at around 800 billion yen, far below the initial goal. One source added that during discussions with institutional investors in August and September, most agreed that the memory market still needed time to fully recover.

Although Bain Capital and Kioxia will continue to seek an opportune moment for the IPO, most market insiders believe that listing within this year will be challenging.

When the delay in Kioxia’s IPO was first reported in late September, TrendForce noted that the NAND flash market began to show signs of a price reversal in the third quarter of 2024 after three consecutive quarters of profit recovery.

Along with weak consumer demand, some companies have also slowed down their AI server deployments, potentially leading to an oversupply. With investors expressing concerns about the industry’s outlook, Kioxia’s decision to go public at this time may not yield a favorable valuation. The company has therefore opted to strategically delay the IPO, waiting for a market recovery.

According to TrendForce data, Kioxia maintained its position as the third-largest NAND flash brand by revenue in Q2, with a market share of 13.8%. Samsung led the market with 36.9%, followed by SK Group at 22.1%.

(Photo credit: Kioxia)

A month ago, Kioxia has reportedly submitted its initial public offering (IPO) application to the Tokyo Stock Exchange. However, as the memory market recently seems to be on a roller coaster ride, the latest report by Reuters notes that the Japanese memory chip maker has decided to cancel its plan to be listed in October.

Citing reports by Japanese media, another report by MoneyDJ indicates that Kioxia’s IPO is expected to be delayed until November or later.

Reuters points out that Kioxia has been aiming for a market valuation of JPY 1.5 trillion (roughly USD 10.39 billion). Nevertheless, the recent decline in shares of other listed memory companies, including Samsung, SK hynix and Micron, has made this target difficult to achieve.

According to Reuters, Bain Capital, which holds a 56% stake in Kioxia along with SK hynix, declined to comment. Kioxia, on the other hand, responded by saying that it is preparing to go public when the timing is right.

This is not the first time Kioxia abandoned its IPO plan. The memory giant had previously scheduled to be listed in 2020. However, due to continued market volatility and ongoing concerns about a second wave of COVID-19, the company gave up the plan in September, 2020.

A few days ago, Japan’s Tokyo Metro initiated the processes to launch its IPO next month. According to The Japan Times, Tokyo Metro aims to raise USD 2.25 billion, marking the country’s largest IPO in six years. Should Kioxia stick to its plan to kick off the IPO by 2024, the deal were to become the largest one of the year.

According to TrendForce, in the NAND Flash market, Kioxia ranked third in revenue in the second quarter of 2024, with a 13.8% market share, after Samsung (36.9%) and SK Group (22.1%).

Read more

• [News] Kioxia’s IPO Paves the Way for SK Hynix to Secure Funds for HBM Investment
• [News] Kioxia Filed for Listing, Reportedly Marking Japan’s Largest IPO of the Year

(Photo credit: Kioxia)

Japanese NAND Flash giant Kioxia is striving for a V-shaped recovery in its performance. According to a report from Japanese news outlet 47news, benefiting from the quick rebound in the semiconductor market, Kioxia’s revenue this fiscal year is reportedly set to reach an all-time high, with operating profit nearing a historic second-highest level.

It is reported that Kioxia’s revenue for the fiscal year 2024 (April 2024 – March 2025) is estimated to reach JPY 1.6 trillion, setting a new historical high.

This is expected to be accompanied by an operating profit of around JPY 300 billion. Kioxia’s strong performance this fiscal year is in contrast with the previous fiscal year (April 2023 – March 2024), which recorded a loss of JPY 252.7 billion, the largest in its history.

The report also suggests that Kioxia is forecasted to maintain similar strong performance in the next fiscal year 2025 (April 2025 – March 2026).

The company’s highest annual revenue record stands at JPY 1.5265 trillion for the fiscal year 2021, with a peak operating profit of JPY 456.8 billion in the fiscal year 2017.

Kioxia was formerly known as Toshiba Memory. It became an independent entity spun off from Toshiba in June 2018 and rebranded as Kioxia in October 2019.

Recently, Japanese news outlet Nikkei reported that Kioxia submitted its listing application to the Tokyo Stock Exchange on August 23, with the goal of going public as soon as October.

Reportedly, Kioxia’s valuation is expected to exceed JPY 1.5 trillion (roughly USD 10.3 billion). The deal is anticipated to surpass the JPY 420 billion raised by chip equipment maker Kokusai Electric during its 2023 IPO, which was the largest of that year.

It is also expected to exceed the projected listing of Tokyo Metro in October, estimated at JPY 640 billion to 700 billion.

Read more

• [News] Kioxia’s IPO Paves the Way for SK Hynix to Secure Funds for HBM Investment
• [News] Kioxia Filed for Listing, Reportedly Marking Japan’s Largest IPO of the Year

(Photo credit: Kioxia)

Kioxia has moved forward with its plans to go public, starting the process on August 23. This development follows Bain Capital, a U.S. private equity firm with a majority stake in Kioxia, submitting an application for the listing to the Tokyo Stock Exchange on the same day, according to Nikkei.

Kioxia, formerly Toshiba Memory Corporation, was spun off from Toshiba in 2018 and rebranded. Bain Capital spearheads a special purpose company that, along with South Korea’s SK Hynix, holds a 56% stake in Kioxia Holdings, making it the largest shareholder. Toshiba retains a 41% stake.

SK Hynix first invested in Kioxia in 2018, committing a total of 4 trillion won (around $2.9 billion). This investment was split between 2.7 trillion won into a private equity fund led by Bain Capital and 1.3 trillion won to acquire Kioxia convertible bonds issued by Toshiba. However, the latest report from Korean media BusinessKorea highlights that SK Hynix has faced difficulties recovering its investment due to Kioxia’s delayed IPO, failed merger attempts, and a weak semiconductor market.

Kioxia had planned to list on the Tokyo Stock Exchange in 2020, but escalating trade tensions between the U.S. and China led to a postponement. In 2023, Kioxia attempted to merge with Western Digital’s memory division to better compete with Samsung Electronics in the NAND flash market, but the effort was blocked by SK Hynix.

Despite these challenges, Kioxia posted a net profit of 69.8 billion yen in the second quarter of this year, its highest second-quarter earnings, as demand for memory in smartphones and PCs bottomed out. With signs of a semiconductor market recovery, Kioxia is pushing for a re-listing to enhance its financial flexibility.

According to Nikkei, after the listing, Bain Capital and Toshiba are expected to gradually reduce their stakes through share sales. SK hynix is also likely to sell part of its stake to recover its investment while maintaining strategic ties with Kioxia and Toshiba.

BusinessKorea believes that should Kioxia achieve a high valuation and successfully go public later this year, SK Group could recover its investment, enabling SK Hynix to reinvest in high-bandwidth memory (HBM) for AI applications.

(Photo credit: Kioxia)

According to a report by the Nikkei, Japanese chip manufacturer Kioxia has submitted its initial public offering (IPO) application to the Tokyo Stock Exchange, triggering a long-awaited move as the development of artificial intelligence (AI) drives a surge in semiconductor demand. The company aims to go public in October, the report notes.

According to a report by Nikkei, citing sources, Kioxia’s valuation is expected to exceed JPY 1.5 trillion (roughly USD 10.3 billion). The deal is anticipated to surpass the JPY 420 billion raised by chip equipment maker Kokusai Electric during its 2023 IPO, which was the largest of that year. It is also expected to exceed the projected listing of Tokyo Metro in October, estimated at JPY 640 billion to 700 billion.

This move comes at a time when the Japanese government is increasing its support for investment in the chip industry, aiming to secure the supply of critical components amid rising geopolitical tensions.

As per another report from Anue, Kioxia had once planned to conduct its IPO in 2020.

However, the plan was postponed due to the uncertainty in the global chip market caused by U.S.-China trade tensions and the outbreak of the COVID-19 pandemic. At that time, Kioxia’s target valuation exceeded 2 trillion yen, which was later reduced to 1.7 trillion yen.

Last year, Kioxia engaged in merger talks with Western Digital’s flash memory business, but the negotiations stalled due to opposition from Kioxia’s shareholder, SK hynix.

Read more

• [News] Kioxia Ends Production Cuts, Signaling Potential Downturn in NAND Flash Market?
• [News] Kioxia and Western Digital Restart Merger Plan, SK Hynix Reportedly Remains Opposition

(Photo credit: Kioxia)