Kioxia, a manufacturer of memory chips, is preparing for an initial public offering in Japan scheduled for December, with an estimated valuation of $4.9 billion, according to reports.
As per Reuters, Bain Capital-backed private equity firm Kioxia is estimated to be valued at roughly 750 billion yen (approximately $4.85 billion) in its forthcoming Japanese IPO.
Kioxia, a prominent global manufacturer of NAND flash memory, intends to launch the IPO on December 18 on the Tokyo Stock Exchange, as mentioned in the report..
The company has set a preliminary price of 1,390 yen for both the secondary offering and new shares. The total deal value for the IPO is expected to be around 100 billion yen ($645.45 million), excluding any overallotment, the report indicated.
Earlier this month, Kioxia submitted a registration statement for the IPO.
Bain, which led a consortium to acquire Kioxia from Toshiba for $18 billion in 2018, has previously considered listing Kioxia. A special-purpose company formed by Bain and South Korean chipmaker SK hynix holds a 56% stake in Kioxia, while Toshiba owns 41%, as reported by Nikkei.
Both Toshiba and Bain will be selling shares in the IPO, while Kioxia plans to issue new shares to raise approximately 27.7 billion yen (around $180 million), according to the report.
Kioxia had previously postponed its IPO plans for October in Japan after investors urged Bain to significantly reduce the valuation it sought for the chipmaker. Bain had been in talks with investment banks regarding the listing. The company was initially expected to raise around $500 million and achieve a market capitalization exceeding 1.5 trillion yen ($10.3 billion) through the IPO.
The decline in shares of Kioxia's publicly traded peers has complicated the pricing process, as noted in earlier reports. Shares of Samsung Electronics, SK hynix, and Micron Technology have all experienced a downturn from their peak values.
Additionally, the Tokyo-based company has been in discussions regarding a potential integration with Western Digital's memory business, aiming to create a competitive entity against NAND memory market leader Samsung.
Discussions were suspended in October 2023. SK hynix stated that it would not consent to the merger of Kioxia and Western Digital's flash memory operations, citing concerns over the potential impact on the value of its investment.