Kioxia, backed by Bain Capital, filed for an IPO on Friday, aiming for a December launch, according to sources close to the matter. This IPO registration marks a fresh effort to go public. Bain had previously cancelled an IPO plan in October when investors urged the U.S. buyout firm to lower its initial 1.5 trillion yen ($9.8 billion) valuation by almost half.
Kioxia stands as the first company to leverage Japan’s new IPO rules, which allow companies to engage with potential investors before receiving Tokyo Stock Exchange listing approval.
The chipmaker expects to secure approval by late November. At this point, it will reveal the indicative share price, sources say, noting that the chipmaker firm has not yet made this information public.
Kioxia’s filing suggests it may conduct the IPO between December and June. A consortium led by Bain acquired Kioxia from Toshiba, which was marred by a scandal six years ago, for 2 trillion yen.
Currently, the company pays Bain a 1-billion-yen annual business consulting fee, which will end once the IPO occurs, after which Kioxia will owe Bain an additional 3.5 billion yen.
Kioxia faces competition from global rivals like Samsung Electronics and SK Hynix and has felt the effects of a downturn in the memory chip market, with ongoing discussions around the stability of the recent price recovery.
Encouragingly, the firm posted a 32% operating profit increase, reaching 166 billion yen for the July-September quarter compared to the previous quarter. It also plans to expand its capacity to meet the growing demand for chips in AI applications.
Specializing in NAND flash memory, which it pioneered in the 1980s, Kioxia counts Apple and Dell as key clients, contributing 21% and 9% of its sales, respectively, in the fiscal year ending in March. Morgan Stanley, Nomura, and BofA Securities serve as joint global coordinators for the IPO. ($1 = 153.2200 yen)
