Kioxia set to gain listing approval with $4.84 billion IPO

Kioxia, backed by Bain Capital, is expected to receive listing approval from the Tokyo Stock Exchange on Friday, according to a Reuters report citing sources.

Kioxia set to gain listing approval with $4.84 billion IPO

The company’s initial public offering (IPO) is anticipated to value it at approximately JPY 750 billion (around USD 4.84 billion) based on the indicative price. The final valuation may vary depending on the IPO price, the report noted. Kioxia, Bain Capital, and the Tokyo Stock Exchange declined to comment on the matter. Originally, Kioxia filed for a Tokyo Stock Exchange listing in August, targeting an October IPO. However, a sluggish recovery in the memory chip market prompted Bain Capital, a major shareholder, to halve the valuation target, resulting in a postponement of the IPO, according to earlier reports by Reuters.

Kioxia's valuation

Previously, Nikkei reported that Kioxia’s valuation was projected to exceed JPY 1.5 trillion (roughly USD 10.3 billion), but the figure has since been nearly halved. Following the delay, Kioxia utilized Japan’s newly introduced IPO application process to streamline the listing procedure. This process allows companies to file a registration statement and engage with investors before securing formal listing approval. Kioxia is the first company to use this system, aiming for an IPO between December 2024 and June 2025. The Reuters report highlights that going public would provide Kioxia with critical fundraising opportunities in the capital-intensive memory chip sector, while also subjecting the company’s financials to heightened scrutiny. The IPO will include share sales by existing shareholders, including Bain Capital. Morgan Stanley, Nomura, and BofA Securities are serving as joint global coordinators for the offering.