Kioxia Plans IPO Registration

By Miho Uranaka and Sam Nussey

TOKYO (Reuters) – Bain Capital-backed Kioxia plans to file a registration statement as soon as Friday, which will allow the Japanese chipmaker to gauge investor interest for an initial public offering (IPO) in December, according to two sources familiar with the matter.

Bain previously scrapped IPO plans in October after investors pressured the U.S. buyout firm to nearly halve the 1.5 trillion yen ($9.79 billion) valuation it was seeking.

Kioxia aims to be the first company to take advantage of new rules allowing firms to test investor appetite prior to obtaining listing approval from the Tokyo Stock Exchange, as stated by the sources who requested anonymity due to the confidential nature of the information.

The chipmaker anticipates receiving approval from the exchange in late November, at which time it will disclose the indicative share price. The IPO schedule will remain flexible in the filings following the new guidelines.

Kioxia mentioned it is preparing for an IPO at the appropriate time but refrained from providing further comments. Bain declined to comment as well.

Despite the volatility of the Japanese stock market in recent months, global investors are reevaluating the outlook for chip-sector companies as the U.S. transitions to a new administration under Donald Trump, whose initial term notably affected global trade.

Kioxia, previously known as Toshiba Memory, has faced challenges due to a downturn in the memory chip market, with the industry deliberating on the sustainability of a recent price recovery.

A Bain-led consortium acquired Kioxia from troubled Toshiba six years ago for 2 trillion yen. The chipmaker is also preparing to expand its capacity in response to the growing demand for chips in artificial intelligence applications.

($1 = 153.2200 yen)