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Kioxia Holdings reportedly plans IPO in September

written by Bella Palmer
ipo

Kioxia last year shelved a plan to offer up to $3 billion in shares, which would have been Japan's largest IPO of 2020

Japan's Kioxia Holdings Corp, the world's second largest maker of flash memory chips, plans an initial public offering (IPO) as early as September, weekly financial magazine Diamond reported on Thursday. Kioxia Holdings Corp was formerly known as Toshiba Memory.

Kioxia, which is controlled by private equity firm Bain Capital, last year shelved a plan to offer up to 334.3 billion yen ($3 billion) in shares, which would have been Japan's largest IPO of 2020.

The Japanese chip maker postponed the offering as it was concerned about being cut off from key customers amid trade tensions between the US and China.

The Tokyo bourse is expected to give its approval in July, the report said, citing sources.

A Kioxia spokesperson on Thursday said the firm was "aiming to IPO at the appropriate time" but declined to comment further.

A spokesperson for Toshiba which still owns 40.6% of the chipmaker, declined to comment.

The Japanese industrial conglomerate, which holds its annual shareholder meeting on Friday amid a furore over accusations management pressured foreign shareholders to back its plans, sold a controlling stake in the prize business unit to Bain in 2018 to raise funds to tackle a financial crisis.

Concern that U.S.-China trade friction would hurt Kioxia's business has eased and a share offer this year would come as the United States, Europe, Japan and China vie to build chip production hubs to secure semiconductor supplies amid worries of global shortages and expectations of longer-term rising demand, such as from car makers.

Media reports previously cited rivals Micron Technology Inc and Western Digital Corp as potential investors in Kioxia.

Toshiba shares advanced 0.4% to 4,860 yen in morning trading.

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