Bain-backed Kioxia, a major player in the global chip market, is set to receive listing approval from the Tokyo Stock Exchange on Friday, two unnamed sources revealed. With an indicative valuation of approximately 750 billion yen ($4.84 billion), the company’s initial public offering (IPO) could reshape the semiconductor landscape in Japan. This market value, reported by Reuters, remains subject to adjustment depending on the IPO’s final pricing.
Neither Kioxia, Bain Capital, nor the Tokyo Stock Exchange offered comments on the valuation or listing timeline. The anonymous sources declined to disclose further information due to the private nature of the details.
Kioxia, formerly known as Toshiba Memory, is aiming for a December IPO under newly introduced Japanese rules that permit companies to communicate with investors while awaiting listing approval. The chipmaker’s upcoming IPO marks a significant step in Bain Capital’s long-term strategy since acquiring Kioxia from Toshiba in 2018 for 2 trillion yen.
This development follows Bain’s decision in October to scrap earlier IPO plans amid investor demands to reduce the chipmaker’s valuation from 1.5 trillion yen. The planned December listing represents Bain’s second attempt in four years to bring Kioxia to public markets, underscoring the challenges of operating in a capital-intensive industry while maintaining investor confidence.
The IPO is expected to provide Kioxia with enhanced fundraising opportunities but will also subject its financial health to increased scrutiny. Bain and other shareholders are set to offload portions of their stakes as part of the IPO process.
Morgan Stanley, Nomura, and BofA Securities will act as joint global coordinators for the offering, ensuring broad participation in Kioxia’s anticipated public market debut.
Featured image courtesy of The Japan Times
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