Image Credit - kioxia-holdings
Kioxia Holdings, the semiconductor giant known for its NAND memory chips, has filed for an initial public offering (IPO) on the Tokyo Stock Exchange. The company aims to go public as early as October, with expectations that its market capitalization could reach approximately 1.5 trillion yen.
The funds raised from the IPO will be allocated to research and development, as well as capital investments, to strengthen Kioxia’s position in the semiconductor market and address the growing demand for data centre components and other applications.
Established in 2017 as a spin-off from Toshiba’s memory semiconductor business, Kioxia has since been supported by U.S. investment firm Bain Capital, among others. The upcoming IPO will see Toshiba, Bain Capital, and other stakeholders gradually selling their shares. Additionally, South Korean semiconductor giant SK Hynix, which has indirect stakes in Kioxia through Bain Capital, is set to acquire around 15% of the company’s stock post-IPO, indicating potential future collaborations.
Kioxia currently holds a global market share of 10-20% in NAND memory semiconductors. With the increasing digitalization and the expansion of artificial intelligence (AI), the company requires significant capital to support its growth and maintain its competitive edge. Despite posting a final deficit for two consecutive fiscal years, Kioxia has shown signs of recovery, driven by a rebound in the semiconductor market.
In April, Kioxia informed its bank lenders of its intention to list as part of its strategic growth plan and has since been preparing for the IPO. The company also aims to bolster its management framework and potentially resume merger discussions with U.S. firm Western Digital, which were previously halted last fall.