Kioxia Plans IPO Registration

By Miho Uranaka and Sam Nussey

TOKYO (Reuters) – Bain Capital-backed Kioxia is set to file a registration statement as early as Friday to gauge investor interest for an IPO in December, according to two sources.

In October, Bain abandoned earlier IPO plans when investors urged a major cut in the proposed 1.5 trillion yen ($9.79 billion) valuation.

Kioxia would be the first to utilize new regulations permitting companies to assess investor appetite prior to obtaining Tokyo Stock Exchange listing approval, the sources added, remaining anonymous due to the confidential nature of the information.

The chipmaker anticipates receiving approval from the exchange by late November, revealing indicative share prices at that time. The IPO schedule remains flexible based on the new regulations.

Kioxia stated it aims for an IPO at a suitable time but could not provide further details. Bain Capital declined to comment.

Despite volatility in the Japanese stock market, global investors are reevaluating the chip sector's outlook with the U.S. set to welcome a new government under Donald Trump, who disrupted global trade policies during his first term.

Kioxia, previously Toshiba Memory, has faced struggles due to a downturn in the memory chip market, as discussions regarding the sustainability of a recent price recovery continue.

A Bain-led consortium purchased Kioxia from Toshiba, which was embroiled in scandals, six years ago for 2 trillion yen.

The chipmaker is preparing for capacity expansion driven by the demand surge for chips used in artificial intelligence applications.

($1 = 153.2200 yen)